On January 1, 2015, Global Manufacturing purchased a machine for $920,000 that it expected to have a useful life of five years. The company estimated that the residual value of the machine was $70,000. Global Manufacturing used the machine for two years and sold it on January 1, 2017. lor $250,000. As of December 31, 2016, the accumulated depreciation on the machine was $340,000?
1. Calculate the gain or loss on the sale of the machinery.
2. Record the sale of the machine on January 1, 2017.