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 $ 30,000 61,000 76,200 Residual Value $ 3,000 4,000 6,800 Estimated Life 8 years 8 years 17 years Accumulated Depreciation (straight line) $20,250 (6 years) 42,750 (6 years) 48,988 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,250 cash. b. Machine B: Sold on December 31 for $11,725, received cash. $2,400, and a $9,325 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