Candy Craze purchased and installed a machine on January 1, 2023, at a total cost of $296,800. Straight-line depreciation was taken each year for four years, based on the assumption of a seven-year life and no residual value. The machine was disposed of on July 1, 2024, during its fifth year of service. Candy Craze’s year-end is December 31.

Required
Present the entries to record the partial year’s depreciation on July 1, 2024, and to record the disposal under each of the following unrelated assumptions:
1. The machine was sold for $112,000 cash.
2. Candy Craze received an insurance settlement of $96,000 resulting from the total destruction of the machine in a fire.