You are provided with the following information for a machine that Hind Company purchased on January 1, 2016:
Purchase price of machine	$9,600
Salvage value	$2,400
Useful life in years	5
1. Calculate depreciation expense for 2016 (2 points).
2. Record the journal entry on December 31, 2016 to show depreciation (2 points).
3. On December 31, 2020, Hind Company sold the machine for the following amount:
$960
Record the journal entry to show the sale (4 points).