Finesse Co. purchases and installs a machine on January 1, 2004, at a total cost of $92,750. Straight- line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2008, during its fifth year of service. Prepare entries to record the partial year s depreciation on July 1, 2008, and to record the disposal under the following separate assumptions: (1) the machine is sold for $35,000 cash and (2) Finesse receives an insurance settlement of $30,000 resulting from the total destruction of the machine in a fire.