James Company purchased four identical machines on January 10, 2019, paying $5,500 for each. The useful life of each machine is expected to be five years, with a salvage value of $700 each. The company uses the straight-line method of depreciation. Selected transactions involving the machines follow. The accounts for recording these transactions are also given.DATE TRANSACTIONS FOR 2019Jan. 10 Paid $5,500, in cash, for each of four machines.Dec. 31 Recorded depreciation for the year on the four machines.DATE TRANSACTIONS FOR 2020Apr. 3 Machine 1 was stolen; no insurance was carried.Dec. 31 Recorded depreciation for the year for the three remaining machines.DATE TRANSACTIONS FOR 2021Sept. 18 Sold machine 2 for $3,200 cash.Dec. 31 Recorded depreciation for the year on the two remaining machines.DATE TRANSACTIONS FOR 2022June 4Machine 3 was traded in for a similar machine (no. 5) with a $6,580 list price and fair market value. A trade-in allowance of $2,510 was received. The balance was paid in cash. The new machine has an estimated life of five years and salvage value of $700.Aug. 29Machine 4 was traded in for a similar machine (no. 6) with an $8,200 list price and fair market value. A trade-in allowance of $1,390 was received. The balance was paid in cash. The new machine has an estimated life of five years, with salvage value of $700.Dec. 31 Record depreciation on the two new machines.Required:Prepare the journal entries for the transactions.Analyze:What is the balance of the Accumulated Depreciation account on December 31, 2022?