Alpha sells machine B for $70,000 cash on 30 April 20X4. Machine B cost * 2 point $80,000 when it was purchased and has a carrying amount of $55,000 at the date of disposal. What are the journal entries to record the disposal of machine B ? Dr Accumulated depreciation $30,000; Dr Cash $90,000; Cr Non-current assets cost $80,000; Cr Profit on disposal - $40,000 Dr Accumulated depreciation $25,000; Dr Loss on disposal - $10,000; Dr Cash $70,000; Cr Non-current assets - cost $80,000 Dr Accumulated depreciation \$25,000; Dr Cash \$70,000; Cr Non-current assets cost \$80,000; Cr Profit on disposal - \$15,000 Dr Accumulated depreciation $140,000;Dr Loss on disposal - \$10,000;Dr Cash $70,000;Cr Non-current assets - cost $80,000 Explain purpose of depreciation. * 1 point To ensure that funds are available for the eventual replacement of the asset To reduce the cost of the asset in the statement of financial position to its estimated market value To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use To account for the 'wearing-out' of the asset over its life