On January 1, 2016, Mullhausen Co. began using the composite depreciation method. There were three machines to consider, as follows: Residual Asset Cost Value Life A $20,000 $2,000 6 years B 15,000 3,000 3 years C 5,000 1,000 4 years At the end of the second year, Machine B was sold for $8,200. In the entry to record the sale, there should be a $8,000 debit to Accumulated Depreciation $6,800 debit to Loss on Sale of Machine $1,200 debit to Gain on Sale of Machine $6,800 debit to Accumulated Depreciation