Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:

Furniture (cost) ............................... $8,000,000
Accumulated depreciation .............. 7,700,000

Required:

1. Give the journal entry for the disposal of the furniture, assuming that it was sold for

a. $300,000 cash

b. $900,000 cash

c. $100,000 cash

2. Based on the three preceding situations, explain the effects of the disposal of an asset.