Answer:
A. June 1, 2021	
Dr Depreciation Expense	$14,000	
Cr Accumulated Depreciation-Equipment $14,000
June 1, 2021
Dr Cash $221,120	
Dr Accumulated Depreciation-Equipment $114,800	
Dr Loss on Sale of Equipment $64,080	
 Cr Equipment $400,000
June 1, 2021	
Dr Depreciation Expense	$14,000	
Cr Accumulated Depreciation-Equipment $14,000
June 1, 2021	
Dr Accumulated Depreciation-Equipment $114,800	
Dr Loss on Sale of Equipment $285,200	
Cr Equipment $400,000
Explanation:
a. Preparation of the journal entries needed to record the asset disposal on June 1, 2021
First step is to calculate the Annual depreciation under straight line using this formula
Annual depreciation under straight line = (Cost - Residual Value)/Useful life
Let plug in the formula
Annual depreciation under straight line= ($400,000 - $64,000)/10 yrs
Annual depreciation under straight line = $33,600 per year
Second step is to calculate the Depreciation charged from Jan 2, 18 to Dec 31, 2020
Depreciation charged from Jan 2, 18 to Dec 31, 2020 = $33,600*3 yrs
Depreciation charged from Jan 2, 18 to Dec 31, 2020 = $100,800
Third step is to calculate the Depreciation from Jan 1, 2021 to June 1, 2021
Depreciation from Jan 1, 2021 to June 1, 2021 
Depreciation from Jan 1, 2021 to June 1, 2021= $33,600*5/12 = $14,000
Now let Prepare the Journal entries
June 1, 2021	
Dr Depreciation Expense	$14,000	
Cr Accumulated Depreciation-Equipment $14,000
(To update depreciation) 
June 1, 2021
Dr Cash ($222,400-$1,280)	$221,120	
Dr Accumulated Depreciation-Equipment ($100,800+$14,000)	$114,800	
Dr Loss on Sale of Equipment (400,000-221,120-$114,800)	$64,080	
 Cr Equipment $400,000
(To record the disposal of equipment) 
b) Preparation to Record the journal entries if the equipment were abandoned on June 1, 2021.
June 1, 2021	
Dr Depreciation Expense	$14,000	
Cr Accumulated Depreciation-Equipment $14,000
(To update depreciation) 
June 1, 2021	
Dr Accumulated Depreciation-Equipment (100,800+$14,000)	$114,800	
Dr Loss on Sale of Equipment ($400,000-$114,800)	$285,200	
Cr Equipment $400,000
(To record the disposal of equipment)