During 2011, Jensen Company disposed of three different assets. On January 1, 2011, prior to their disposal, the accounts reflected the following:

The machines were disposed of in the following ways:
a. Machine A: Sold on January 1, 2011, for $9,200 cash.
b. Machine B: Sold on December 31, 2011, for $7,500; received cash, $3,500, and a $4,000 interest-bearing (12 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, 2011, this machine suffered irreparable damage from an accident. On January 10, 2011, a salvage company removed the machine at no cost.

Required:
1. Give all journal entries related to the disposal of each machine in 2011.
2. Explain the accounting rationale for the way that you recorded eachdisposal.

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Accumulated Original Cost Residual Value Estimated Depreciation Asset Life straight line Machine A Machine B Machine C $21,000 41,000 73,000 $3,000 4,000 5,000 8 years 10 years 15 years $13.500 (6 years) 29,600 (8 years) 54,400 (12 years)