Milk Company bought a machine on 1 January 2015 for $5,000,000. The machine has an estimated useful life of 10 years with no residual value. The company uses straight-line depreciation method, cost...

Milk Company bought a machine on 1 January 2015 for $5,000,000. The machine has an estimated useful life of 10 years with no residual value. The company uses straight-line depreciation method, cost model for all its PPE and its balance day is 31 December.

On 30 September 2019, Milk Company decided to donate the machine to the Dunedin City Council for future fundraising. The fair value of the machine was estimated to be $2,800,000 at the time of the donation.

Prepare the necessary journal entries to record the above transactions.