Use the information presented for Ottawa Corporation in BE10.15, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to
(a) Update depreciation for 2020
(b) Record the sale.
Information from BE10.15
Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2016. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2019.