Rayya Company purchases a machine for $176,400 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service.

Prepare entries to record the partial years depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $75,600 cash. (2) The machine is sold for $60,480 cash.