Problem 1 Cunningham Company sold the following two machines in 2007: Machine A Machine B Cost $84,000 $60,000 Purchase date 7/1/03 1/1/04 Useful life 8 years 5 years Salvage value $4,000 $3,000 Depreciation method Straight-line Straight-line Instructions

Journalize all entries required to update depreciation of the two assets in 2007. The company has recorded depreciation on the machine through December 31, 2006.