In late August 20X5, Fine Inc., a public company, replaces some old equipment in its manufacturing center. Finnie Inc. hires a resale firm to sell the old equipment. The resale firm charges a commission of 20%. The original equipment cost $580,000, and accumulated depreciation to date of $490,000. The resale firm estimates that the equipment is worth $106,000. In December 20X5, an economic downturn results in the estimated resale price of the equipment to be $91,000. In February, the economy recovers, and the company sells the equipment for $104,000. Prepare the journal entries to record the classification and sale of the equipment.