PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $35,000 71,200 Accumulated Depreciation Residual Value Estimated Life $4,200 4,700 5 years 14 years (straight-line) $24,640 (4 years) $52,250 (11 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $10,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 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.) View transaction list View journal entry worksheet