Recording and Interpreting the Disposal of Three Long-Lived Assets (AP8-5) P8-5 During the current year, Yost Company disposed of three different assets. On January 1 of the current LO8-3 year, prior to the disposal of the assets, the accounts reflected the following: The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $5,000 cash. b. Machine B: Sold on December 31 for $30,500; received cash, $22,500, and an $8,000 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries related to the disposal of each machine in the current year. 2. Explain the accounting rationale for the way that you recorded each disposal