During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original
Cost Residual
Value Estimated
Life Accumulated
Depreciation
(straight-line)
Machine A $ 76,200 $ 4,200 15 years $ 62,400 (13 years)
Machine B 20,000 2,000 8 years 13,500 (6 years)
The machines were disposed of in the following ways:
a. Machine A: Sold on January 2 for $20,000 cash.
b.
Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.
Required:
1. & 2.
Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)