Josh Inc. paid $2,400,000 cash for equipment on May 8, 2015, and immediately brought it into use. At the time of purchase it was estimated that the equipment would produce 4,000,000 casings over its useful life of five years and have a residual value of $600,000.
On August 1, 2019, the equipment was sold for $925,000. Josh Inc. depreciates its equipment using the straight-line method. Its policy is to record a full month of depreciation expense when assets are first available for use and no depreciation expense in the month of disposal.

Required:
a. Prepare the journal entry to record the derecognition of the asset on August 1, 2019.
b. Assume that rather than using the straight-line method the company uses the units-of production method to derive depreciation expense. Further assume that 2,900,000 casings were produced during the time that the machine was owned. Prepare the journal entry to record the derecognition of the asset on August 1, 2019.