On December 31, 2020, Pronghorn Inc. has a machine with a book value of $1,071,600. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,482,000 410,400 $1,071,600 Depreciation is computed at $68,400 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) Your answer is correct. Afire completely destroys the machine on August 31, 2021. An insurance settlement of $490,200 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 Ofor the amounts.) Date Credit Account Titles and Explanation Depreciation Expense Debit 45600 ist 31, 2021 45600 Accumulated Depreciation-Machinery (To record current depreciation.) Accumulated Depreciation-Machinery ist 31, 2021 456000 Cash 490200 Loss on Disposal of Machinery 535800 Machinery 1482000 (To record loss of the machine.) (b) On April 1, 2021, Pronghorn sold the machine for $1,185,600 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.) Account Titles and Explanation Debit Credit Date April 1, 2021 (To record current depreciation.) April 1, 2021 (To record sale of the machine.)