6:48 PM Sun Nov 8 97% Ch 10[b] HW + Ch 10[b] HW Question 3 of 5 - /20 View Policies Show Attempt History Current Attempt in Progress On December 31, 2020, Sheffield Inc. has a machine with a book value of $1,128,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,560,000 Less: Accumulated depreciation 432,000 Book value $1,128,000 Depreciation is computed at $72,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $516,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit 6:49 PM Sun Nov 8 97% Ch 10[b] HW + Ch 10[b) HW Question 3 of 5 - /20 (b) On April 1, 2021, Sheffield sold the machine for $1.248,000 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit April 1, 2021 (To record current depreciation.) April 1, 2021 (To record sale of the machine.) eTextbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit