On January 1, 2017 , Universal Manufacturing purchased a machine for $ 770,000 that it expected to have a useful life of five years. The company estimated that the residual value of the machine was $ 120,000. Universal Manufacturing used the machine for two years and sold it on January 1, 2019 , for $ 200,000. As of December 31, 2018 , the accumulated depreciation on the machine was $ 260,000.

1. Calculate the gain or loss on the sale of the machinery. Universal Manufacturing will record a 2. Record the sale of the machine on January 1, 2019. (Record debits first, then credits. Exclude explanations from any journal entries.) of $ on the sale of the machinery Journal Entry Date Accounts Debit Credit 2019 Jan 1