During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following:

Asset	Original Cost		Residual Value		Estimated Life	Accumulated Depreciation (straight line)
Machine A	$	27,000	$	3,000	12 years	$	20,000 (10 years)
Machine B		65,000		4,000	10 years		48,800 (8 years)
Machine C		75,700		6,600	17 years		48,776 (12 years)

The machines were disposed of in the following ways: (a) Machine A: Sold on January 1, 2015, for $6,700 cash. (b) Machine B: Sold on December 31, 2015, for $10,700; received cash, $2,100, and a $8,600 interest-bearing (12 percent) note receivable due at the end of 12 months. (c) Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost. Required: Give all journal entries related to the disposal of each machine in 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A (a) Record the depreciation of Machine A. (b) Record the disposal of Machine A. Transaction General Journal Debit Credit Machine B (a) Record the depreciation of Machine B. (b) Record the disposal of Machine B. Transaction General Journal Debit Credit Machine C (a) Record the depreciation of Machine C. (b) Record the disposal of Machine C. Transaction General Journal Debit Credit Explain the accounting rationale for the way that you recorded each disposal: Machine A: Disposal of a long-lived asset with the price below net book value results in a Machine B: Disposal of a long-lived asset with the price above net book value results in a Machine C: Disposal of a long-lived asset due to damage results in a remaining book value.