On December 31, 2025, Blue Inc., has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows.
		Machine	$	1,872,000
		Less: Accumulated depreciation		518,400
		Book Value		1,353,600
	Depreciation is computed at $86,400 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 mde to update the book value of the machine prior to its disposal.
	(a)	A fire complete destroys the machine August 31, 2026.An insurance settlement of $619,200 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, selct "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
		Date		Account Titles and Explanation		Debit		Credit
		8/31/2026
				(To record current depreciation)
		8/31/2026
				(To record the loss of the machine)
	(b)	On April 1, 2026, Blue sold the machine for $1,497,600 to Yoakam Company.
		(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, selct "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
		Date		Account Titles and Explanation		Debit		Credit
		4/1/2026
			(To record current depreciation)
	4/1/2026
		(To record the loss of the machine)
	(c)	On July 31, 2026, the company donated this machine to the Mountain King City Council. The fair value of th emachine at the time of the donation was estimated to be $1,584,000.
		(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, selct "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
		Date		Account Titles and Explanation		Debit		Credit
	7/31/2026
	(To record current depreciation)
	7/31/2026
	(To record the loss of the machine)