[The following information applies to the questions displayed below.] During the current year, Merkley 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: The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,700 cash. b. Machine B: Sold on December 31 for $9,225; recelved cash, $2,500, and a $6,725 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On Januarv 1, this machine suffered irreparable damage from an accident On Januarv 10. a salvace b. Machine B: Sold on December 31 tor $9,225; received cash, $2,500, and a $6,725 interest-bearing (12 percent) note recelvable 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. Explain the accounting rationale for the way that you recorded each disposal