On January 1st, 2018, The Liam Company purchased machinery costing $146,000 and incurred $5,000 in installation costs. The machinery has an estimated useful life of 15 years and residual value of $10,000. the company uses the straight libr method of depreciation. at the end of 2019, Liam Gill recorded depreciation and assessed the asset , determining a recoverable amount of $127,000. Liam sold the equipment to the Faizaan Corporation on June 30th, 2020, for $130,000.

1. prepare the necessary entry required by Liam Gill to record the purchase of the Machine on January 1st, 2018.

2. prepare all the necessary entries for the Liam Gill Company on december 31st, 2019.

3. Prepare the compound entry required for the sale of thr Machinery. on June 30th , 2020.