Problem 10-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3. Onslow paid $10.000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $17,280 salvage vafue. Straightline depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. . Predire 1 Record the purchase of a used machine for $144,000 cash. 2 Record the costs of $10,000 incurred on the used machine. 3 Record the cost of $2,000 for an operating platform. 2. Prepare journal entries to record depreciation of the machine at December 31. 1 Record the first year year-end adjusting entry for the depreciation expense of the used machine. 2 Record the year of disposal year-end adjusting entry for pense of the depreciation expense of the used machine. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $23,000 cash and (b) it is sold for $92,000 cash. 1 Record the sale of the used machine for $23,000 cash. 2 Record the sale of the used machine for $92,000 cash