Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of Problem 8-6A Part 3 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions (a) it is sold for $20,500 cash; (b) it is sold for $82,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,000 cash to settle the loss claim