Required information [The following information applies to the questions displayed below.] During the current year, Yost 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: Accumulated Depreciation Asset Machine A Machine B Original Cost Residual Value Estimated Life $21,000 $3,000 10 years 15,600 10 years Machine C 5,300 17 years 130,000 75,700 (straight line) $14,400 (8 years) 91,520 (8 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 $6,000 cash. b. Machine B: Sold on December 31 for $50,040; received cash, $40,032, and an $10,008 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. 2. Select the accounting rationale for the way that you recorded each disposal. Machine A: Disposal of a long-lived asset with the price below net book value results in a Machine B: Disposal of a long-lived asset with the price above net book value results in a Machine C: Disposal of a long-lived asset due to damage results in a remaining book value