Bears, Inc. bought equipment on Jan. 1 of Year 1, for $115,000. The equipment was expected to remain in service for five years with no expected salvage value. Straight-line depreciation is taken on the equipment for two years. On July 1 of Year 3 (i.e. during 3rd year of service), Bears sold the equipment for $54,300. Journalize depreciation under the straight-line method for Year 3 and journalize the sale of equipment on July 1 of Year 3.