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Rayya Co purchases and installs a machine on January 1, 2017, at a total cost of $105,000. Straight-line depreciation is taken each year or four

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Rayya Co purchases and installs a machine on January 1, 2017, at a total cost of $105,000. Straight-line depreciation is taken each year or four years assuming a seven year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service points Prepare entries to record the partial years depreciation on July 1, 2021 and to record the disposal under the following separate assumptions (1) The machine is sold for $45,500 cash. (2) An insurance settlement of $25,000 is received due to the machine's total destruction in a fire

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