The Fascinating Company is replacing a machine used for glazing. The old machine was originally recorded at a cost of $110,000 and depreciated over 10 years straight line with no salvage value. The statement of financial position shows a book value net of accumulated depreciation at the beginning of the financial year of $44,000. The cost of the new machine is $150,000 and Jon negotiated to trade in the old machine for $40,000 and pays cash for the balance.

Assume the glazing machine is sold on January 1 (half way into the financial year). Journalise all entries relating to the disposal of the old glazing machine.