On January 2, 2020, Direct Shoes Inc. disposed of a machine that cost $88,000 and had been depreciated $47,650. Present the journal entries to record the disposal under each of the following unrelated assumptions: ** please show work and answers for B, thank you in advance

a. The machine was sold for $36,500 cash. No Credit 1 Answer is complete and correct. Date General Journal January 02, 2020 Cash Loss on disposal Accumulated depreciation, machine Machine Debit 36,500 3,850 47,650 88,000 b. The machine was traded in on new tools having a $125,000 cash price. A $44,000 trade-in allowance was received, and the balance was paid in cash. Since the tools have been customized, the fair values are not known. NO Credit 1 Answer is complete but not entirely correct. Date General Journal January 02, 2020 Tools Accumulated depreciation, machine Machine Gain on disposal Cash Debit 125,000 47,650 88,000 3,650 81,000