Meca Concrete purchased a mixer on January 1, 2019, at a cost of $206,000. Meca used sum of the year digit method for depreciation for 2019 and 2020 . It was based on an estimated eight-year life and $5,000 estimated residual value. In 2021, Meca switched the depreciation method to tdeclining balance method and revised its estimate and now believes the mixer will have a total service life of only seven years, and that the residual value will be only $2,000. Required: 1. Compute and record depreciation for 2021 and 2022.

2. Meca sold the mixer on January 1st 2023 for 20,000. Prepare journal entry to record the sales entry .