A machine with a useful life of 5 years and a salvage (residual) value of $6,000 was purchased on January 3, 2016 for $48,500. The machine was sold on January 5, 2012 for $13,000.

1. What is the book value of the machine on January 5, 2021 assuming that straight-line depreciation was used?

2. What is the effect on the accounts (and list those accounts) and the effect on the financial statements (list the financial statements affected and how they are affected) of the sale of the machine on January 5, 2021?

3. What is the effect on the accounts (and list those accounts) and the financial statements (list the financial statements affected and how they are affected) of the sale of the machine if it had been sold for $18,000 instead?