Exercise 7-59 (Algorithmic) Disposal of Tangible Capital Asset Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2018 Pacifica sold the machine to another company and did not replace it. The following data are available for the machine Cost (installed), 1/1/2013 $920,000 Residual value estimated on 1/1/2013 160,000 Estimated life as of 1/1/2013 8 years The machine was sold for $190,000 cash. Pacifica uses the straight-line method of depreciation Required: 1. Prepare the journal entry to record depreciation expense for 2018 2018 Dec 31 Depreciation Expense 95,000 Accumulated Depreciation Record depreciation expense Food 2. Compute accumulated depreciation at December 31, 2018 570,000 3. Prepare the journal entry to record the sale of the machine. For those boxes in which no entry is required, leave the box blank. 2018 Dec 31 Cash 570.000 Accumulated Depreciation Loss on Disposal of Property, Plant, and Equipment X Machine 930,000 Record sale of machine