On December $31,2020,$ Pronghorn Inc. has a machine with a book value of $$996,400.$ The original cost and related accumulated

depreciation at this date are as follows.

Depreciation is computed at $$63,600$ per year on a straight$-$line basis.

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record

the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

$($a$).$

$($b$)$

$($c$)$

On July $31,2021,$ the company donated this machine to the Mountain King City Council. The fair value of the machine at the time

of the donation was estimated to be $$1,166,000.($Credit account titles are automatically indented when amount is entered. Do not

indent marually. If no entry is required, select $"$No Entry" for the account tities and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

July $31,2021$

$($To record current depreciation.$)$

July $31,2021$

$($To record donation of the machine.$)$