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 $82,200 26,000 Residual Value $7,700 3,200 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $64,567 (13 years) 17,100 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $26,000 cash. b. Machine B: On January 2, this machine was sold to a salvage company at 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.) Journal entry worksheet Record the disposal of Machine A for $26,000 cash on January 2, 2014. Note: Enter debits before credits. Date Debit Credit Jan 02 General Journal Cash Accumulated Depreciation-Equipment Gain on Disposal Equipment Record entry Clear entry View general journal Journal entry worksheet