[The following information applies to the questions displayed below.]

Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage 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.

Required:
1.	Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.

Journal Entry Worksheet

Record the purchase of a used machine for $240,000 cash.

Record the costs of $8,000 incurred on the used machine.

Record the cost of $1,600 for an operating platform.

Prepare journal entries to record depreciation of the machine at December 31.

(a)	Its first year in operations.

Journal Entry Worksheet

Record the year-end adjusting entry for the depreciation expense of the used machine.

(b)	The year of its disposal.

Journal Entry Worksheet

Record the year-end adjusting entry for the depreciation expense of the used machine.

Prepare journal entries to record the machine's disposal under each of the following separate assumptions:

(a)	It is sold for $22,500 cash.

Journal Entry Worksheet

Record the sale of the used machine for $22,500 cash.

(b)	It is sold for $90,000 cash.

Journal Entry Worksheet

Record the sale of the used machine for $90,000 cash.

(c)	It is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim.

Journal Entry Worksheet

Record the insurance settlement received of $33,000 resulting from the total destruction of the machine in a fire.