On Jan 1, Year 1, Double Boe Inc. purchased a new machine. The cost of the machine was $140,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. Double Boe Inc. uses a calendar year and the straight-line method of depreciation. At the end of Year 3, after depreciating the machine, Double Boe sold this machine for $75,000. The journal entry to sell this machine includes: 1. A debit to Accumulated Depreciation for $72,000 2. A credit to Machine for $140,000 3. A debit to Gain on Sale of Machinery for $7,000 4. A credit to Loss on Sale of Machinery for $ 66,000