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1.Howarth Manufacturing Company purchased a lathe on June 30, 2009, at a cost of $80,000. The residual value of the lathe was estimated to be $5,000 at the end of a five year life. The lathe was sold on March 31, 2013, for $17,000. Howarth uses the straight line depreciation method for all of its plant and equipment. Partial year depreciation is calculated based on the number of months the asset is in service.Required:1. Prepare the journal entry to record the sale.2. Assuming that Howarth had instead used the sum of the years digits depreciation method, prepare the journal entry to record the sale.
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