During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $76,700 $4,300 15 years $62,747 (13 years) Machine B 20,500 2,100 8 years 13,800 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $20,500 cash. 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