Problem 10-6A Disposal of plant assets LO C1, P1, P2 (The following information applies to the questions displayed below.) Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $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 $34,560 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. Problem 10-6A Part 1 Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. View transaction list Journal entry worksheet 1 2 3 3 > Record the purchase of a used machine for $288,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jan 02 Record entry Clear entry View general Journal Problem 10-6A Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. View transaction list Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $23,000 cash. 2. Record the sale of the used machine for $92,000 cash. 3. Record the insurance settlement received of $33,500 resulting from the total destruction of the machine in a fire. View transaction list Journal entry worksheet 1 2 3 > Record the sale of the used machine for $23,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31