Exercise 8-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $125,500 and has accumulated depreciation of $90,700. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $15,800 cash. 3. Diaz sold the machine for $34,800 cash. 4. Diaz sold the machine for $41,200 cash. Answer is complete but not entirely correct. No Date Credit 11 Jan 01 General Journal Accumulated depreciation Machine Loss on disposal of machine Machine Debit 90,700 34,800 125,500 Jan 01 Accumulated depreciation-Machine Cash Loss on disposal of machine Machine 90,700 15,800 19,000 125,500 Jan 01 Accumulated depreciationMachine Cash 90,700 34,800 Machine 125,500 Jan 01 90,700 41,200 Accumulated depreciationMachine Cash Gain on sale of machine Machine 6,400 125,500