Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $142,800. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value The machine is disposed of on July 1, 2021, during its fifth year of service 3 Prepare entries to record the partial year's depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: () The machine is sold for $71,400 cash. (2) An insurance settlement of $59,976 is received due to the machine's total destruction in a fire View transaction list View journal entry worksheet No Date General Journal Debit 1 July 01, 2021 Depreciation expense 71 400 2 mol 2021 Accumulated depreciation-Machinery Machinery 142 800 Gain on sale of machinery 3 July 01. 2021 Cash Loss on disposal of equipment 42.800 Machinery