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	$	31,000		$	3,100		6	years	$	23,250	(5 years)
Machine B		60,200			3,500		15	years		45,360	(12 years)

The machines were disposed of in the following ways:

1. Machine A: Sold on January 1 for $8,700 cash.
2. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:

1. 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year