Prout Company purchased a machine on January $1,2004$ for $$400,000.$ The machine had a useful life of $25$ years. On January $1,2014,$ Prout Company sold the machine for $$360,000$ to Sexton Company.

$1.$ Prepare the entries on the books of both Prout and Sexton during $2014$ assuming straight line depreciation and that the estimated life does not change.

$2.$ Prepare the entry on Sexton's books if they sell the asset for $$300,000$ on January $1,2016$

$3.$ Compute the Investment in Bonds account balance at December $31$st$,2014$