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: Original Cost Residual Value Estimated Life Accumulated Depreclation straight line) Asset Machine A Machine B MachineC 21,000 3,0008 years15,750 (7 years) 50,000 85,000 4,000 10 years 5,000 15 years 36,800 (8 years) 64,000 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $5,000 cash. b. Machine B: Sold on December 31 for $10,500; recelved cash, $2,500, and an $8,000 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