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	$	35,000		$	3,800		6	years	$	26,000	(5 years)
Machine B		67,200			4,200		12	years		47,250	(9 years)

The machines were disposed of in the following ways:

a.

Machine A: Sold on January 1 for $9,200 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. 1. Record the current year depreciation for Machine A prior to disposal. Machine A: Sold on January 1 for $9,200 cash. Record the transaction. Record the current year depreciation for Machine B prior to disposal. 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.