APTER 8 Reporting and Interpreting Property, Plant, and Equipment; Natural esources; and intangibles 77 Recording and Interpreting the Disposal of Three Long-Lived Assets (AP8-7) P8-9 During 2018, Ct Company disposed of three different assets. On January 1, 2018, prior to the disposal of the assets, the accounts reflected the following: LO85 Original Residual Estimated Accumulated Depreciation (straight line) $13,500 (6 years) 29,600 (8 years) 60,000 (10 years) Cost Asset Value Life $20,000 Machine A $2,000 8 years 10 years 12 years Machine B 41,000 4,000 75,000 Machine C 3,000 The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2018, for $7,200 cash. b. Machine B: Sold on April 1, 2018, for $8,500; received cash, $2,500, and a note receivable for $6,000, due on March 31, 2016, plus 6 percent interest. c. Machine C: Suffered irreparable damage from an accident on July 2, 2018. On July 10, 2018, a salvage company removed the machine immediately at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Required: I. Prepare all journal entries related to the disposal of each machine in 2018. P8-10 Determining Financial Statement Effects of Activities Related to Various Long-Lived Assets (AP8-8) 2.Explain the accounting rationale for the way that you recorded each disposal. L086 28 000 cash, with an estimated useful life of seven years. for $164 000 cash, including BSP Company completed the following transactions during fiscal year 2017