On December 31, 2020, Oriole Inc. has a machine with a book value of $1,109,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,534,000 Less: Accumulated depreciation 424,800 Book value $1,109,200 Depreciation is computed at $70,800 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. Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $507,400 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when 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.) ate Account Titles and Explanation 31, 2021 Depreciation Expense Accumulated Depreciation-Machinery (To record current depreciation.) 31, 2021 Cash Accumulated Depreciation-Machinery Loss on Disposal of Machinery Machinery (To record loss of the machine.) Debit 47200 507400 472000 554600 Credit 47200 1534000 (b) On April 1, 2021, Oriole sold the machine for $1,227,200 to Yoakam Company. (Credit account titles are automatically indented when 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, 2021 (To record current depreciation.) April 1, 2021 (To record sale of the machine.) Debit Credit