On January 1, 2013 the ABC Manufacturing Purcahsed a machine for $860,000. ABC manufacturing expects the machine to remain useful for five years and to have a residual value of $60,000.

ABC manufacturing uses the straight-line method to depreciate its machinery.

ABC manufacturing used the machine for three years and sold it on January 1, 2016 (Same as December 31, 2015 )

1. Compute accumulated depreciation on the machinery at January 1, 2016 (same as December 31, 2015)

2. Record the sales of the machine on January 1, 2016