Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Original Cost Residual Value Estimated Life Asset Machine A Machine B $28,550 73,600 $ 3,300 3,850 5 years 15 years Accumulated Depreciation (straight-line) $20,200 (4 years) 60,450 (13 years) The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1 for $7,440 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. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1: