CP9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $78,700 22,500 Residual Value $5,100 2,500 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $63,787 (13 years) 15,000 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $22,500 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal