DDB Depreciation and Sale of Asset

On 04/01/20 XYZ Company acquired a new Widget Machine for $800,000. The machine has a residual value of $80,000 and an estimated life of 5 years.

Required:

1) Compute the Estimated Depreciation using the DDB Method for year 2020.

2) On 07/01/21, the Machine was sold for $600,000. Record Depreciation up to date of sale and the Journal Entry for the disposition.