Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2025. The machinery is sold on September 1, 2026, for $10,500. Prepare journal entries to 

(a) Update depreciation for 2026 and 

(b) Record the sale.