Disposal of an Asset Aeronautics Company purchased a machine for $115,000. The machine has an estimated useful life of eight years and a salvage value of $7,000. Journalize the disposal of the machine under each of the following conditions. (Assume straight-line depreciation.)

1. Sold the machine for $97,000 cash after two years.

2. Sold the machine for $36,000 cash after five years.