Explain with steps

Options:

• Accumulated amortization
• Accumulated depletion
• Accumulated depreciationMachinery
• Amortization expense
• Building
• Cash
• Depletion expense
• Depreciation expenseMachinery
• Gain on sale of machinery
• Goodwill
• Impairment loss
• Land
• Land improvements
• Leasehold improvements
• Loss from fire
• Loss on exchange of assets
• Loss on sale of machinery
• Machinery
• Mineral deposit
• Ore mine
• Prepaid rent
• Rent expense
• Repairs expense
• Vehicles

Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 8-6A Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal