Required information [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $240,000 cash on January 2 . On January 3 , Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31 , at the end of its fifth year in operations, it is disposed of. Prepare journal entries to record depreciation of the machine at December 31. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $23,000 cash and (b) it is sold for $92,000 cash