On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,259,600. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,742,000 482,400 $1,259,600 Depreciation is computed at $80,400 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 Correct Answer Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $576,200 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.) Credit Date gust 31, 2021 Account Titles and Explanation Depreciation Expense Debit 53600 53600 Accumulated Depreciation-Machinery (To record current depreciation.) gust 31, 2021 Cash 576200 Accumulated Depreciation Machinery 536000 Loss on Disposal of Machinery 629800 1742000 Machinery (To record loss of the machine.) (b) On April 1, 2021, Riverbed sold the machine for $1,393,600 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.) e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit