On January 2, 2005, Atlantic Co. disposes of a machine costing $42,000 with accumulated depreci¬ ation of $22,625. Prepare the entries to record the disposal under each of the following separate assumptions:

1. Machine is sold for $16,250 cash.

2. Machine is traded in on a similar but newer machine having a $58,500 cash price. A $20,000 trade-in allowance is received, and the balance is paid in cash.

3. Machine is traded in on a similar but newer machine having a $58,500 cash price. A $15,000 trade-in allowance is received, and the balance is paid in cash.