Howarth Manufacturing Company purchased a lathe on June 30, 2014, at a cost of $150,000. The residual value of the lathe was estimated to be $15,000 at the end of a five-year life. The lathe was sold on March 31, 2018, for $45,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare a schedule to calculate the gain or loss on the sale. 2. Prepare the journal entry to record the sale. 3. Assuming that Howarth had instead used the sum-of-the-years-digits depreciation method, prepare the journal entry to record the sale.