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	$86,200	$10,600	15 years	$65,520	(13 years)
Machine B	30,000	4,000	8 years	19,500	(6 years)

The machines were disposed of in the following ways:

Machine A: Sold on January 2 for $30,000 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, 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.)