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Exercise 8-16 Disposal of assets LO P2 Diaz Company owns a milling machine that cost $126,100 and has accumulated depreciation of $94,700. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations.

1. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return.

2. Diaz sold the machine for $16,500 cash.

3. Diaz sold the machine for $31,400 cash.

4. Diaz sold the machine for $40,800 cash.