Ly Company disposed of two different assets. On January $1,$ prior to their disposal, the accounts reflected the following: AssetOriginal CostResidual ValueEstimated LifeAccumulated Depreciation $($straight$-$line$)$Machine A$$38,000$$$4,5005$ years$$26,800(4$ years$)$Machine B$74,2004,60012$ years$$52,200(9$ years$)$ The machines were disposed of in the following ways: Machine A: Sold on January $1$ for $$12,000$ cash.Machine B: On January $1,$ this machine was scrapped with zero proceeds $($and zero cost of removal$).$ Required:$1.$ & $2.$ Prepare the journal entries