During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following:

Asset	Original Cost		Residual Value		Estimated Life	Accumulated Depreciation (straight line)
Machine A	$	27,000	$	3,000	12 years	$	20,000 (10 years)
Machine B		65,000		4,000	10 years		48,800 (8 years)
Machine C		75,700		6,600	17 years		48,776 (12 years)

The machines were disposed of in the following ways:

(a) Machine A: Sold on January 1, 2015, for $6,700 cash.

(b) Machine B: Sold on December 31, 2015, for $10,700; received cash, $2,100, and a $8,600 interest-bearing (12 percent) note receivable due at the end of 12 months.

(c) Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost.

Required:
	Give all journal entries related to the disposal of each machine in 2015. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Machine A

(a) Record the depreciation of Machine A.

(b) Record the disposal of Machine A.

Transaction	General Journal	Debit	Credit

Machine B

(a) Record the depreciation of Machine B.

(b) Record the disposal of Machine B.

Transaction	General Journal	Debit	Credit

Machine C

(a) Record the depreciation of Machine C.

(b) Record the disposal of Machine C.

Transaction	General Journal	Debit	Credit

	Explain the accounting rationale for the way that you recorded each disposal:

Machine A: Disposal of a long-lived asset with the price below net book value results in a
Machine B: Disposal of a long-lived asset with the price above net book value results in a
Machine C: Disposal of a long-lived asset due to damage results in a
	remaining book value.