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: Accumulated Original Residual Estimated Depreciation Asset Cost Value Life (straight line) Machine $36,000 $ 3,000 10 years $ $26,400 (8 years) A Machine 45,000 4,000 30,750 (6 years) B Machine 75,500 6,700 8 years 16 years 51,600 (12 years) C The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2015, for $9,000 cash. b. Machine B: Sold on December 31, 2015, for $9,725; received cash, $2,300, and a $7,425 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. View transaction list Journal entry worksheet 1 2 Record the depreciation of Machine A. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet 1 2 Record the disposal of Machine A. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 Record the depreciation of Machine B. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit 7 Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 Record the disposal of Machine B. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 View general journal Record entry Clear entry View transaction list Journal entry worksheet < 1 2 Record the depreciation of Machine C. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal > View transaction list Journal entry worksheet 1 2 Record the disposal of Machine C. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal