Question 1: First: A company purchased and installed a machine on January 1, 2015. at a total cost of $72,000. Straight- line depreciation was calculated based on the assumption of a five-year life and no salvage value. The machine was disposed of on July 1 of the fourth year. The company uses the calendar year. Depreciation was recorded for the last three years. 1. Prepare the general journal entry to update depreciation to July 1 in the fourth year. Record depreciation for the six months in year 2018. 2. Prepare the general journal entry to record the disposal of the machine under each of these two independent situations: a. The machine was sold for $22,000 cash. b. The machine was sold for $15,000 cash. Answer Transation Account Debit Credit 2a