Mary Cooper Ltd acquired a machine for $250 000 on 2 January 2014. The machine had a useful life of 4 years and a residual value of $10 000. Straight-line depreciation is used. The machine is to be disposed on 1 July 2017. Assume that the accounting period ends on 31 December. Ignore GST.

Required: Part C (6 marks)

1) What entry should be made to record depreciation prior to the disposal on 1 July 2017?

2,Prepare journal entries to record the disposal ofthe machine ifthe machine was sold for $ 60 000 cash.

3,Assume that the machine was completely destroyed by fire on 3 April 2017, and cash of $ 50 000 was received from the insurance company on 2 May 2017. Prepare the relevantjournal entries.