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 $$41,000$ $$4,7006$ years $$30,250(5$ years$)$

Machine B $77,2005,10014$ years $$56,650(11$ years$)$

The machines were disposed of in the following ways:

Machine A: Sold on January $1$ for $$11,200$ 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 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.$)$ ANSWER A$,$B$,$C$,$ and D$--$ A$.$Record the current year depreciation for Machine A prior to disposal. B$.$Machine A: Sold on January $1$ for $$11,200$ cash. Record the transaction. C$.$Record the current year depreciation for Machine B prior to disposal. D$.$Machine B: On January $1,$ this machine was scrapped with zero proceeds $($and zero cost of removal$).$ Record the transaction.