Jaguar Corporation purchased a machine that had an original cost of $60,000 and an estimated residualvalue of $10,000. The useful life was expected to be 8 years and straight-line depreciation is used. AtDecember 31, 2006 (Jaguars annual year-end), the book value of the machine was $35,000. JaguarCorporation sold the machine for $32,000 cash on October 1, 2007.

Required:

(A) Prepare the journal entry to record depreciation expense for 2007 at Oct 1, 2007 for themachine. Round the amount to the nearest dollar.

(B) Prepare the journal entry to record the sale of the machine on Oct. 1, 2007