On December 31, 2025, Sunland Inc. has a machine with a book value of $1,184,400. The original cost and related accumulated depreciation at this date are as follows. Machine $1,638,000 Less: Accumulated depreciation 453,600 Book value $1,184,400 Depreciation is computed at $75,600 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) A fire completely destroys the machine on August 31, 2026. An insurance settlement of $541,800 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Your answer is correct. A fire completely destroys the machine on August 31, 2026. An insurance settlement of $541,800 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Jg. 31, 2026 Depreciation Expense Accumulated Depreciation - Machinery (To record current depreciation.) Jg. 31, 2026 Cash Debit Credit 50400 541800 Accumulated Depreciation - Machinery 504000 Loss on Disposal of Machinery Machinery 592200 50400 1638000 On April 1, 2026, Sunland sold the machine for $1,310,400 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation Apr. 1, 2026 Apr. 1, 2026 (To record current depreciation.) (To record sale of the machine.) Debit Credit