Chapter 7 Lab On April 1 of 2009, Paddy's Pub purchased three pieces of machinery for $250,000 with cash. The following table provides a summary of the relevant information for each piece of equipment. Useful Life Date Sold Machine 1 Machine 2 Machine 3 Salvage Value $10,000 $12,000 $15,000 7 years 8 years 5 years Appraised Value $75,000 $120,000 $105.000 Depreciation Method DDB Straight line MACRS May 1, 2013 June 30, 2012 Never sold Sale Price $9,000 $6,000 NA Required: Prepare the journal entry to record the initial purchase of the machinery. Also, prepare the journal entry to record the sale of Machine 2