Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2,840 cost. On January 3, it is installed on a required operating platform costing $1,160, and it is further readied for operations. The company predicts the machine will be used for six years and have a $14,000 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

Prepare journal entries to record depreciation of the machine at December 31. Please show solutions.

1. Record the first year year-end adjusting entry for the depreciation expense of the used machine.

2. Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine.

3. Record the sale of the used machine for $15,000 cash.

4. Record the sale of the used machine for $50,000 cash.

5. Record the insurance settlement received of $30,000 resulting from the total destruction of the machine in a fire.