Required information [The following information applies to the questions displayed below.] During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2015, for $12,350 cash. b. Machine B: Sold on December 31,2015 , for $10,900; received cash, $2,300, and a $8,600 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost. 2. Explain the accounting rationale for the way that you recorded each disposal