^{_{On March 31, 2013, the Herzog Company purchased a factory complete with machinery and equipment. The allocation of the total purchase price of $1,050,000 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 $ 125,000 N/A N/A Building 550,000 none 20 Machinery 190,000 12% of cost 8 Equipment 185,000 $ 13,000 4 Total $ 1,050,000 On June 29, 2014, machinery included in the March 31, 2013, purchase that cost $105,000 was sold for $85,000. 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.)}}

^{_{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.)}}

^{_{3. Compute depreciation expense on the building, remaining machinery, and equipment for 2014. (Do not round intermediate calculations.)}}