Sullivan Sales purchased a machine on January 1, 2015 which cost $450,000. The machine had a residual value of $50,000 and a useful life of 10 years. Sullivan Sales can replace this machine with one that is more efficient and decides to sell the old machine for $100,000 on July 1, 2017.

Required:

Prepare the appropriate journal entry to record the sale of this machine, assuming the company uses the double-declining-balance method of depreciation. The fiscal year ends on December 31.

Depreciation Schedule:

Year	Book Value Beginning of Year	Rate	Annual Depreciation	Accumulated Depreciation	Book Value

Date	Account	Debit	Credit