Vidotron Lte completed the following transactions involving printing equipment. Machine 366-90 was purchased for cash on May

Vidéotron Ltée completed the following transactions involving printing equipment.

Machine 366-90 was purchased for cash on May 1, 2014, at an installed cost of $72,900. Its useful life was estimated to be four years with an $8,100 trade-in value. Straight-line depreciation was recorded for the machine at the end of 2014 and 2015.

On August 5, 2016, it was traded for Machine 366-91, which had an installed cash price of $54,000. A trade-in allowance of $40,500 was received and the balance was paid in cash. The new machine’s life was estimated at five years with a $9,450 trade-in value. The fair values of Machines 366-90 and 366-91 were not reliably determined at the time of the exchange. Double-declining-balance depreciation was recorded on each December 31 of Machine 366-91’s life. On February 1, 2019, it was sold for $13,500. Machine 367-11 was purchased on February 1, 2019, at an installed cash price of $79,650. It was estimated that the new machine would produce 75,000 units during its useful life, after which it would have an $8,100 trade-in value. Units-of-production depreciation was recorded on the machine for 2019, a period in which it produced 7,500 units of product. Between January 1 and October 3, 2020, the machine produced 11,250 more units. On October 3, 2020, it was sold for $54,000.

Required

Prepare journal entries to record:

1. The depreciation expense recorded to the nearest whole month on the first December 31 of each machine’s life (for units-of-production, round the rate per unit to three decimal places).

2. The purchase/exchange/disposal of each machine.