On April 1, 2013, Brandoni Company has a piece of machinery with a cost of $100,000 and accumulated depreciation of $75,000. On April 1, Brandoni decided to sell the machine within one year. As of April 1, 2013, the machine had an estimated selling price of $10,000 and a remaining useful life of two years. It is estimated that selling costs associated with the disposal of the machine will be $1,000. On December 31, 2013, the estimated selling price of the machine had increased to $15,000, with estimated selling costs increasing to $1,600.
1. Make the entry to record the initial classification of the machine as held for sale on April 1, 2013.
2. Make the entry to record depreciation expense on the machine for the period April 1 through December 31, 2013.
3. Make the entry, if any, needed on December 31, 2013, to reflect the change in the expected selling price.