During 2012, Jensen Company disposed of three different assets. On January 1, 2012, prior to their disposal, the accounts reflected the following:

Asset	Original Cost	Residual Value	Estimated Life	Accumulated Depreciation(straight line)
Machine A	$21,000	$3,000	8 years	$13,500 (6 years)
Machine B	41,000	4,000	10 years	29,600(8 years)
Machine C	75,000	5,000	15 years	56,000 (12 years)

The machines were disposed of in the following ways:

a). Machine A: Sold on January 1, 2012. for $8,600 cash.

b). Machine B: Sold on December 31, 2012, for $10,700; received cash, $2,500, and a $8,200 interest-bearing (12 percent) note receivable due at the end of 12 months.

c). Machine C: On January 1, 2012, this machine suffered irreparable damage from an accident. On January 10, 2012, a salvage company removed the machine at no cost.

Required:

1. Give all journal entries related to the disposal of each machine in 2012.

2. Explain the accounting rationale for the way that you recorded each disposal.