Ly company disposed of two different assets. on january 1, prior to their disposal, the accounts reflected the following:
asset original cost residual value estimated life accumulated depreciation (straight-line)
machine $ 31,000 $ 3,100 6 years $ 23,250 (5 years)
a
machine b 60,200 3,500 15 years 45,360 (12 years)
b
the machines were disposed of in the following ways:
machine a: sold on january 1 for $8,700 cash.
machine b: on january 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). required:
1. & 2. prepare the journal entries related to the disposal of machine a and b at the beginning of the current year. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)