On December 31, 2019, Skysong Inc. owns a machine with a carrying amount of $824,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine $1,400,000 Accumulated depreciation 576,000 $824,000 Depreciation is calculated at $96,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Skysong Inc. to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Skysong Inc. uses IFRS for financial statement purposes. (a) Your answer has been saved. See score details after the due date. A fire completely destroyed the machine on August 31, 2020. An insurance settlement of $420,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation August 31, Depreciation Expense 2020 Accumulated Depreciation - Machinery (To record depreciation on machinery) August 31, 2020 Cash Accumulated Depreciation - Machinery Loss on Disposal of Machinery Machinery (To record disposal of machinery) Debit 64000 420000 640000 340000 Credit 64000 1400000 (b) On April 1, 2020, Skysong sold the machine for $1,044,000 to Sheridan Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation April 1, 2020 April 1, 2020 (To record depreciation on machinery) (To record disposal of machinery) Debit Credit