cording and Interpreting the Disposal of Three Long-Lived Assets (AP8-7) g 2018, Ct Company disposed of three different assets, On January 1, 2018, prior to t disposal of the assets, the accounts reflected the following: Residual Value $2,000 4,000 3,000 Original Estimated Accumulated Depreciation Cost $20,000 41,000 75,000 Life 8 years 10 years 12 years (straight line) $13,500 (6 years) 29,600 (8 years) 60,000 (10 years) Asset Machine A Machine B Machine C 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 $6,00 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 ed, and salvage company removed the machine immediately at no cost. The machine was insur $18,000 cash was collected from the insurance company. Required: 2. Explain the accounting rationale for the way that you recorded each disposal. l. Prepare all journal entries related to the dtisposal of each machine in 2018