On 1 July 2017, Reliance Ltd paid $66 000 for a machine with a useful life of 5 years and a residual value of $6000. The machine was sold on 31st December 2020 for $20000. Ignore GST.

Required:

Prepare the journal entries to record depreciation and the sale of the machine on 31st December 2020. Use the straight-line depreciation method

(Hint: Calculate accumulated depreciation balance on the date of sale i:e 30th Dcember 2020)