Springfield Corporation purchases a new machine on April 1, 2018 for $39,000 in cash including normal and necessary costs for setting it up. Springfields accountant determines that the equipment has no residual value and that the useful life is five years or 2,400,000 units. Springfield uses the units-of-production method to depreciate the equipment.

a. Record depreciation for 2018 and 2019 assuming 600,000 balls were manufactured and sold in 2018 and 580,000 were manufactured and sold in 2019. (Do not round the depreciation rate - leave at 5 decimal places)

Debit Credit

b. On January 1, 2020, Springfield decides to sell the machine for $16,500 cash.

Record this journal entry.

Debit Credit