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Required information (The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Original Cost $ 21,000 50,000 85,000 Asset Machine A Machine B Machine C Residual Value $ 3,000 4,000 5,000 Estimated Life 8 years 10 years 15 years Accumulated Depreciation (straight line) 15,750 (7 years) 36,800 (8 years) 64,000 (12 years) $ The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $5,000 cash. b. Machine B: Sold on December 31 for $10,500; received cash, $2,500, and an $8,000 interest-bearing (12 percent) note receivable due at the end of 12 months. C. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Required A Required B Required c Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) General Journal Credit No A Transaction December 31 Debit 4,600 Depreciation expense B December 31 Cash Note receivable Accumulated depreciation, Machine B Gain on disposal of machine Equipment (Machine B) 2,500 8,000 41,400 OOO 2,860 50,000

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