On January 1, Year 1, Jayco purchased a machine for $6,000. It had an estimated salvage value of $1,200 and a life of six years. The straight-line method of depreciation was used. At, midyear in Year 4, Jayco sold the machine for $4,500 cash.
Required:
a. What is the book value of the machine at the time of the sale?
b. Give the journal entry to record the sale of the machine.