During the current year, Rayon Corporation 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 $ 69,000 $ 12,000 9 years $ 38,000 (6 years) Machine B 15,100 2,500 7 years 9,000 (5 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2, for $34,400 cash. b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.