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.