Sandhill Corporation owns machinery that cost $22,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,736 per year, resulting in a balance in accumulated depreciation of $9,576 at December 31, 2020. The machinery is sold on September 1, 2021, for $11,970. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale