Circle cellar sells equipment on june 1, 2021 for $695,000 cash. Circle incurred 4000 of removal and selling costs on disposal. The equipment cost $1,250000 when it was purchased on january 2, 2018. Its estimated residual value and useful life were 200,000 and 10 years, respectfully. Circle uses straight line depreciation and records annual depreciation on december 31. prepare the journal entries to record the asset disposal on june 1 2021