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Required information The following information applies to the questions displayed below.) At the beginning of the year, Almond Factory bought three used machines. The machines

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Required information The following information applies to the questions displayed below.) At the beginning of the year, Almond Factory bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately In the accounts. Details for Machine A are provided below. Cont of the annet Installation costs Renovation costs prior to use Repairs after production began $10,400 940 1,020 790 Required: 1. Compute the amount to be capitalized for Machine A Total cost During the current year, Martinez Company disposed of two different assets. On January 1. prior to their disposal, the accounts reflected the following: Original Residual Tetinated Accumulated Depreciation Asset Cost Value Life (straight-line) Machine $84,700 $9,600 15 years 565,087 (13 years) Machine 28.500 3,700 years 18,600 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $28,500 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removat), Required: 1. & 2. Prepare the journal entries related the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal (ir no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Machine A: Sold on January 2 for $28,500 cash. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit January 02 Record entry Clear entry View general Journal Journal entry worksheet 1 2 Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date January 02 + Record entry Clear entry View general Journal

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