Required information P8-6 (Algo) Recording and Interpreting the Disposal of Three Long-Lived Assets LO8-3, 8-5 (The following information applies to the questions displayed below.) During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Machine C Original Cost $ 36,000 65,000 75,600 Residual Value $ 3,000 4,000 6,700 Estimated Life 6 years 8 years 18 years Accumulated Depreciation (straight line) $22,000 (4 years) 45,750 (6 years) 45,933 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $13,700 cash. b. Machine B: Sold on December 31 for $12,325; received cash, $2,300, and a $10,025 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. P8-6 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. C. Machine C. Journal entry worksheet Record the depreciation of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Journal entry worksheet