On October 4, 2015, C and C Sandblasters Company purchased a new machine for $45,000. It estimated the machine’s useful life at 12 years and the residual value at $4,000. On March 25, 2016, another machine was acquired for $70,000. Its useful life was estimated to be 15 years and its residual value $6,000. On May 24, 2017, the first machine was sold for $28,000. The company closes its books on December 31 each year, uses the straight-line method of depreciation, and calculates depreciation to the nearest month.
Required:
Give the necessary journal entries for the years 2015 through 2017 for both machines. Include the depreciation of the second machine on December 31, 2017.