On March 31, 2016, the Herzog Company purchased a factory complete with machinery and equipment. The allocation of the total purchase price of $1,010,000 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 $ 105,000 N/A N/A Building 510,000 none 20 Machinery 230,000 12% of cost 10 Equipment 165,000 $ 15,000 5 Total $ 1,010,000

On June 29, 2017, machinery included in the March 31, 2016, purchase that cost $101,000 was sold for $81,000. 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 2016. (Do not round intermediate calculations.)

Required: 2. Prepare the journal entries to record the depreciation on the machinery sold on June 29, 2017, and the sale of machinery. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)