Williams Company acquired machinery on July 1, Year 1, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double-declining-balance method of depreciation. On October 1, Year 4, Williams sold the equipment for $75,000.

1. Record the journal entry for the depreciation on this machinery for Year 4.

	Depreciation Expense
	Machinery

2. Record the journal entry for the sale of the machinery. If an amount box does not require an entry, leave it blank. If required, round amounts to the nearest dollar.

	Cash
	Machinery
	Loss on Sale of Machinery
	Gain on Sale of Machinery