Saturn Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at an $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 residual value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions (Omit the "S" sign in your response) (a) It is sold for $23,000 cash Date Dec. 31 General Journal Debit Credit Loss on sale of machinery Accumulated depreciation-machinery Cash 23,000 Machine (b) It is sold for $92,000 cash Date Dec. 31 Cash General Journal Debit Credit 92000 Accumulated depreciation-machinery Gain on sale of machinery Machiner (C) It is destroyed in a fire and the insurance company pays $33,500 cash to settle the loss claim. Date Dec. 31 Cash General Journal Debit Credit Depreciation expense-machinery Gain on sale of machinery Machine