11.10.00 points value: CP9-2 Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Value 4,800 2,400 Estimated Life 15 years 8 years Asset Cost (straight-line) $63,613 (13 years) 14,700 (6 years) Machine A $78,200 Machine B 22,000 The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $22,000 cash. b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on January 2 of the current year. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. View transaction list Import a new list Record the disposal of Machine A for $22,000 cash on January 2, 2014 1 2 Record the disposal of Machine B due to irreparable damage from an accident. Credit Note-journal entry has been entered Record entry Clear entry View general journal