A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one whose price was $1,000,000 on 2nd June 2020 and the company paid $300,000 for this exchange. The policy of the company is to charge depreciation for its PP&E at 10% on cost per annum. Depreciation is charged in full during the year of purchase, but no depreciation is charged in the year of disposal.

Required: Prepare the following accounts for the year ended 31st December 2020:

Machinery account

Accumulated depreciation account

Machinery disposal a/c