1.Record the disposal of Machine A for $25,500 cash on January 2, 2014.

2. Record the disposal of Machine B due to irreparable damage from an accident.

CP9-2 Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] During the current yearMartinez Company disposed of two different assets. On January 1, prior to their disposalthe accounts reflected the following: Original Residual Asset Cost Value Machine A$81,700 $ 7,500 Machine B 25,500 3,100 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $64,307 (13 years) 16800 (6 years) The machines were disposed of in the following ways: a Machine A: Sold on January 2 for $25,500 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 Journal entry worksheet Record the disposal of Machine A for $25,500 cash on January 2, 2014. Note: Enter debits before credits. Debit Credit Date General Journal Jan 02 Record entry Clear entry View general journal