Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

Prepare journal entries to record depreciation of the machine at December 31.

A)the year of its disposal

B)Prepare journal entry for the machine being sold for 23,000 cash

C)Prepare journal entry for the machine being sold for 92,000 cash

Lastly, It is destroyed in a fire and the insurance company pays $33,500 cash to settle the loss claim -Record the destruction of the used machine in a fire with $33,500 cash insurance settlement.