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Onslow Co. purchases a used machine for $240,000 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 $28,800 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.

3. Create a journal entries to record the machine's disposal under each of the following separate assumptions:

1. Record the sale of the used machine for $20,000 cash.
2. Record the sale of the used machine for $80,000 cash.
3. Record the insurance settlement received of $30,500 resulting from the total destruction of the machine in a fire.