During the current year ended December 31, Rank Company disposed of three different assets. On January I of the current year, prior to their disposal, the asset accounts reflected the following:

The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $6,750 cash.
b. Machine B: Sold on December 31 for $8,000; received cash, $2,000, and a $6,000 interest-bearing (10 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident and was scrapped.
Required:
1. Give all journal entries related to the disposal of each machine.
2. Explain the accounting rationale for the way in which you recorded each disposal.

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Original Cost Residual Value Estimated Life ccumulated Depreciation straight line) $17,600 (4 years) Machine A $24,000 $2.000 Machine B 6.500 Machine C 59,200 3,200 5 years 20 years 14 years 4,025 (7 years) 48,000 (12 years) 5,000