Recording Asset Acquisition, Depreciation, and Disposal

On January $2,2016,$ Verdi Company acquired a machine for $$75,000.$ In addition to the purchase price, Verdi spent $$2,100$ for shipping and installation, and $$2,600$ to

calibrate the machine prior to use. The company estimates that the machine has a useful life of $5$ years and a residual value of $$11,000.$

Required

a$.$ Prepare journal entries to record the acquisition costs.

b$.$ Calculate the annual depreciation expense using straight$-$line depreciation and prepare a journal entry to record depreciation expense for $2016.$

c$.$ On December $31,2019,$ Verdi sold the machine to another company for $$14,000.$ Prepare the necessary journal entry to record the sale.