Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following:

Asset	Original Cost	Residual Value	Estimated Life	Accumulated Depreciation (straight-line)
Machine A	$	28,200		$	3,200		5 years	$	20,000	(4 years)
Machine B		72,800			3,800		15 years		59,800	(13 years)

The machines were disposed of in the following ways:

1. Machine A: This machine was sold on January 1 for $7,310 cash.
2. 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:

Machine B - January 1:

Record the entry for depreciation expense

Record the entry for disposal of machine b