! Required information [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: Original Cost Residual Value Estimated Life Asset Machine A Machine B Machine C $ 24,000 $ 3,000 8 years 41,000 76,400 4,000 8 years 6,000 17 years Accumulated Depreciation (straight line) $15,750 (6 years) 27,750 (6 years) 49,694 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,850 cash. b. Machine B: Sold on December 31 for $9,425; received cash, $2,300, and a $7,125 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.