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 $ 27,000 65,000 75, 700 Residual Value $ 3,000 4,000 6, 700 Estimated Life 10 years 8 years 18 years Accumulated Depreciation (straight line) $19, 200 (8 years) 45, 750 (6 years) 46,000 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,300 cash. b. Machine B: Sold on December 31 for $12,325; received cash, $2,100, and a $10,225 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. P8-6 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Journal entry worksheet Record the depreciation of Machine B. Note: Enter debits before credits. Debit Credit Transaction General Journal December 31 Depreciation expense Accumulated depreciation, Machine B Record entry Clear entry View general journal Journal entry worksheet