PA9-2 Recording and Interpreting the Disposal of Long-Lived Assets LO 9-5 Ly Company disposed of two...

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PA9-2 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 Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $30,000 $3,000 5 years $21,600 (4 years) Machine B 59,200 3,200 14 years $44,000 (11 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $9,000 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. Give the journal entry related to the disposal of Machine A at the beginning of the current year. 2. Give the journal entry related to the disposal of Machine B at the beginning of the current year. Page 435 PA9-2 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 Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $30,000 $3,000 5 years $21,600 (4 years) Machine B 59,200 3,200 14 years $44,000 (11 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $9,000 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. Give the journal entry related to the disposal of Machine A at the beginning of the current year. 2. Give the journal entry related to the disposal of Machine B at the beginning of the current year. Page 435