2. On 31 December 2016, Reagen Corp ha s new machine with a book value of S940,000. The original cost and related accumulated depreciation at this date are as follows: Machine Accumulated depr360,000 Book value $1,300,000 940,000 Depreciation is computed at $72,000 per year on straight line basis Instructions: Prepare the journal entries with various situation: a. On 1 April 2017, Company sold the machine for $1,040,000 b. On 1 July 2017, Company donated this machine to city council