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 $ 36,000 $ 3,900 5 years $ 25,680 (4 years) Machine B 68,200 4,500 14 years 50,050 (11 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $10,800 cash. 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. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year.