Andarex Company owns an industrial tractor it purchased for $400,000 on January 1, 2012. The tractor is being depreciated using the straight line method with a $40,000 salvage value over the tractor's 10 year useful life. Depreciation is recorded at the end of each calendar year.

Required (Show all calculations) Prepare all necessary journal entries related to the tractor in 2018 assuming that it was sold on July 31, 2018 for $185,400.