VII. Sandhill Co. had the following assets on January 1, 2022. Item Cost Purchase Date Useful Life (in years) Salvage Value Machinery $79,000 Jan. 1, 2011 10 50 Forklift 38,000 Jan 1, 2019 0 During 2022, each of the assets was removed from service. The machinery was retired on January 1. The forklift was sold on June 30 for $12,800. Journalize all entries required on the above dates, including entries to update depreciation, where applicable, on disposed assets. The company uses straight-line depreciation. All depreciation was up to date as of December 31, 2021. Keep in mind that some of the assets may have been fully depreciated. If so, no more depreciation expense can be taken. 1. Retirement of machinery on Jan 1, 2022 (journal entry) 2. Sale of the forklift on June 30, 2022 for $12,800 1. Annual depreciation = 2. Accumulated depreciation at the end of 2021 = 3. Depreciation for 2022 = 7,600 x 6/12 - 4. Accumulated on sale date (including 2022 depreciation) = Don't forget the journal entries