C&K Co. purchased equipment that was installed and ready for use on January 2, 2025 at a total cost of $200,000. The salvage value was estimated at $20,000. The machinery is depreciated over four years using the straight-line method. On January 3, 2027, the machine sold for $108,000.

Instructions:

1. What is the book value of the equipment at 12/31/2026?

2. What journal entry would be made at January 3, 2027 to record the sale?