During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the accounts reflected the following:

Asset	Original Cost	Residual Value	Estimated Life	Accumulated Depreciation (straight line)
Machine A	$	36,000	$	3,000	8 years	$	24,750 (6 years)
Machine B		61,000		4,000	10 years		45,600 (8 years)
Machine C		75,000		5,500	17 years		49,059 (12 years)

The machines were disposed of in the following ways:

a. Machine A: Sold on January 1 for $10,850 cash.

b. Machine B: Sold on December 31 for $10,300; received cash, $2,500, and a $7,800 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.