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	$	79,200		$	5,500		15	years	$	63,873	(13 years)
Machine B		23,000			2,600		8	years		15,300	(6 years)

The machines were disposed of in the following ways:

1. Machine A: Sold on January 2 for $23,000 cash.
2. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:

1. 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.