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Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated

Ly Company 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 $ 30,000 $ 3,000 5 years $ 21,600 (4 years)
Machine B 59,200 3,200 14 years 44,000 (11 years)

The machines were disposed of in the following ways:

a. Machine A: Sold on January 1 for $9,000 cash.
b.

Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.

Required:
1. & 2

Prepare the journal entry related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

First Journal Entry = Record the current year depreciation for Machine A prior to disposal.

Second Journal Entry= Machine A: Sold on January 1 for $9,000 cash. Record the transaction

Third Journal Entry= Record the current year depreciation for Machine B prior to disposal.

Last Journal Entry= Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Record the transaction.

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