1. Depreciation (20 points)

Woody House Corp. purchased a production machine at a price of $500,000 on March 21^st, 2012 on account. The depreciated is on a straight-line basis with an estimated useful life of ten years.

On May 31^st, 2019, Woody House Corp. sold the production machine for cash of $140,000. The depreciation had been recorded last on December 31^st, 2018.

Instruction: (show your calculations and round to 2 decimal places)

1. Compute the depreciation expense for the fractional period of 2019
2. Compute the book value of the production machine at May 31^st, 2019, the date of sale.
3. Compute the gain or loss on the sale of the production machine
4. In the space provided below, prepare the all journal entries necessary to be recorded for the sale of the production machine on May 31^st, 2019.

5. Date		Account Titles	Debit	Credit