Kenco purchased a new CNC lathe 6 years ago that had an installed cash cost of $475,000. The lathe was being depreciated over 8 years using straight line deprecation without taking salvage value into consideration. On 12/31 of the sixth year, Kenco sold the lathe to a machine tool dealer for $85,000.

Required: Assume that lathe has been depreciated over six years and

that accumulated depreciation is up to date. Make the

required journal entry to record the transaction in

Kencosaccounting system.