Response to the following questions:
1. Early in the fifth year of a machine's six-year useful life, it is overhauled, and its useful life is extended to nine years. This machine originally cost $108,000 and the overhaul cost is $12,000. Prepare the entry to record the overhaul cost.
2. A company acquires equipment on January 10, 2011, at a cost of $42,000. Straight-line depreciation is used with a five-year life and $7,000 salvage value. On June 27, 2012, the company sells this equipment for $32,000. Prepare the entry(ies) for June 27, 2012.