On March 31, 2013, the Herzog Company purchased a factory complete with machinery and equipment. The allocation of the total purchase price of $1,100,000 to the various types of assets along with estimated useful lives and residual values are as follows:

Asset	Cost			Estimated Residual Value			Estimated Useful Life in Years
Land	$	150,000		N/A			N/A
Building		600,000		none			25
Machinery		140,000		12% of cost			10
Equipment		210,000		$	15,000		5
Total	$	1,100,000

On June 29, 2014, machinery included in the March 31, 2013, purchase that cost $110,000 was sold for $90,000. Herzog uses the straight-line depreciation method for buildings and machinery and the sum-of-the-years'-digits method for equipment. Partial-year depreciation is calculated based on the number of months an asset is in service.

Required:

1.

Compute depreciation expense on the building, machinery, and equipment for 2013. (Do not round intermediate calculations.

	Depreciation expense
Building
Machinery
Equipment

2.

Prepare the journal entry to record the depreciation on the machinery sold on June 29, 2014, and the sale of machinery. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) Accounts to choose from are as follows: No journal entry required Accumulated depreciationMachinery Amortization expense Building Cash Depreciation expense Equipment Franchise Gain on sale Goodwill Litigation expense Loss on impairment Loss on sale of machinery Machinery Maintenance expense Patent Plant assets Refrigerators Research and development expense Retained earnings Revaluation expense Revaluation surplusOCI Small tools