During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Machine C Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line) $13,500 (6 years) $ 21,000 65,000 75,600 $ 3,000 4,000 6,200 8 years 10 years 17 years 48,800 (8 years) 48,988 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,000 cash. b. Machine B: Sold on December 31 for $10,800; received cash, $2,100, and a $8,700 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.