On 1 July 2012 Long Boards Ltd acquired a printing machine at a cost of $120 000. At acquisition the machine had an expected useful life of 12000 machine hours and was expected to be in operation for four years, after which it would have no residual value. Actual machine hours were 3000 in the year ended 30 June 2013 and 3400 in the year ended 30 June 2014. On 1 July 2014 the machine was sold for $50 000.
Prepare journal entries to record depreciation of the printing machine for each o the years ended 30 June 2013 and 30 June 2014 using the straight-line method. State the carrying amount of the machine at the end of each period. Prepare the journal entry to record the sale of the machine on 1july 2014.