At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.

	Machine A	Machine B	Machine C
Amount paid for asset	$	23,100	$	32,700	$	16,500
Installation costs		2,100		1,700		1,200
Renovation costs prior to use		3,000		2,800		3,100

By the end of the first year, each machine had been operating 6,000 hours.

1. Compute the cost of each machine.

1. Prepare the entry to record depreciation expense at the end of year 1, assuming the following.

	ESTIMATES
Machine		Life	Residual Value	Depreciation Method
A		7 years	$2,300		Straight-line
B		70,000 hours	2,200		Units-of-production
C		8 years	1,900		Double-declining-balance

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

Asset	Original Cost	Residual Value	Estimated Life	Accumulated Depreciation (straight line)
Machine A	$	36,000	$	3,000	8 years	$	24,750 (6 years)
Machine B		61,000		4,000	10 years		45,600 (8 years)
Machine C		75,000		5,500	17 years		49,059 (12 years)

The machines were disposed of in the following ways:

a. Machine A: Sold on January 1 for $10,850 cash.

b. Machine B: Sold on December 31 for $10,300; received cash, $2,500, and a $7,800 interest-bearing (12 percent) note receivable due at the end of 12 months.

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

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