Problem $9-16$A Disposal of PPE LO$1,2,3,6$

Vita Water purchased a used machine for $$120,800$ on January $2,2023.$ It was repaired the next day at a cost of $$8,400$ and installed on a new platform that cost $$1,800.$ The company predicted that the machine would be used for six years and would then have a $$35,120$ residual value. Depreciation was to be charged on a straight$-$line basis to the nearest whole month. A full year$$s depreciation was recorded on December $31,2023.$ On September $30,2028,$ it was retired.

Required:

$1.$ Prepare journal entries to record the purchase of the machine, the cost of repairing it$,$ and the installation. Assume that cash was paid.

$2.$ Prepare entries to record depreciation on the machine on December $31$ of its first year and on September $30$ in the year of its disposal. $($Round intermediate calculations to the nearest whole dollar.$)$

$3.$ Prepare entries to record the retirement of the machine under each of the following unrelated assumptions:

a$.$ It was sold for $$35,000.$

b$.$ It was sold for $$45,000.$

c$.$ It was destroyed in a fire and the insurance company paid $$40,000$ in full settlement of the loss claim.