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		$	4,700		6	years	$	30,250	(5 years)
Machine B		77,200			5,100		14	years		56,650	(11 years)

The machines were disposed of in the following ways:

1. Machine A: Sold on January 1 for $11,200 cash.
2. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:

1. 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.)

2. 1	January 01	No Journal Entry Required
   2	January 01	Cash	11,200
   		Accumulated DepreciationEquipmentselected answer correct	30,250
   		Gain on Disposalselected answer correct		41000
   		Equipment
   3	January 01	No Journal Entry Required
   4	January 01	Accumulated DepreciationEquipment
   		Loss on Disposals
   		Equipment