EX10-2: Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2012. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31 , 2015 . The machinery is sold on September 1,2016 , for $10,500. Prepare journal entries to (a) update depreciation for 2016 and (b) record the sale