CP 8-11 The Savage Corporation purchased three milling machines on January 1, 2015 and immediately placed them into service. The following information relates to these purchases: Machine 1 Machine 2 Machine 3 Cost $7,500 $7,500 $7,500 Salvage value -0 1,200 300 Useful life 5 Years 6 Years 8 Years The company uses the straight-line method of depreciation, and records 12 year depreciation in the years of acquisition and disposal. On January 1, 2020, machine 1 was sold for $500. On the same day, management re-evaluated the estimated useful lives and the salvage values of the remaining machines. They came to the conclusion that machine 2 had a remaining useful life of two years (that is, to December 31, 2021), while salvage value remained unchanged. Machine 3 had a remaining useful life of five years (that is, to December 31, 2024) but now had no salvage value. Required: Prepare journal entries 1. To record the sale of machine 1 on January 1, 2020. 2. To record the revised 2020 depreciation expense for machine 2. 3. To record the revised 2020 depreciation expense for machine 3. BA E