Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,000 cash; (b) it is sold for $88,000 cash; and (c) it is destroyed in a fire and the insurance company pays $32,500 cash to settle the loss claim. View transaction list Journal entry worksheet Record the sale of the used machine for $88,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 3 Record the insurance settlement received of $32,500 resulting from the total destruction of the machine in a fire. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal