Required information Problem 10-6A Disposal of plant assets LO C1, P1, P2 (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the machine and an additional $1,160 to secure it in place. The machine will be used for six years and have a $14,000 salvage value. Straight line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $15,000 cash; (b) it is sold for $50,000 cash; and (it is destroyed in a fire and the insurance company pays $30,000 cash to settle the loss claim