3. Ignore the information in parts (1) and (2) and assume that the airplane costs $86,600, that its expected useful life is five years, and that its estimated salvage value is $7,000. The company now uses the straight-line depreciation method. On January 1, 2020, the following balances are in the related accounts: Airplane $86,600 Accumulated Depreciation, Airplane 47,760 Prepare the necessary journal entries to record the sale of this airplane on July 1, 2020, for $40,880. If an amount box does not require an entry, leave it blank. July 1 Depreciation Expense 7,960 Accumulated Depreciation, Airplane 7,960 July 1 Cash Accumulated Depreciation, Airplane Airplane Gain on Sale of Airplane