Deares b. c. $19,200 d. $0 (the food truck was scrapped). Exercise 9-21 Partial year's depreciation; disposal of PPE LO2, 3,6 CHECK FIGURES: a. Gain = $6,000; b. Loss = $10,000 Candy Craze purchased and installed a machine on January 1, 2020, at a total cost of $296,800. Straight-line depreci- ation was taken each year for four years, based on the assumption of a seven-year life and no residual value. The machine was disposed of on July 1, 2021, during its fifth year of service. Candy Craze's year-end is December 31. Required Present the entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under each of the following unrelated assumptions: a. The machine was sold for $112,000 cash. b. Candy Craze received an insurance settlement of $96,000 resulting from the total destruction of the machine in a fire. Exercise 9-22 Exchanging PPE LO6