During 2013, Rayon Corporation disposed of two different assets. On January 1, 2013, prior to their disposal, the accounts reflected the following:

The machines were disposed of in the following ways:
a. Machine A: Sold on January 2, 2013, for $33,500 cash.
b. Machine B: On January 2, 2013, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.
Required:
1. Give the journal entries related to the disposal of each machine at the beginning of 2013.
2. Explain the accounting rationale for the way that you recorded each disposal?

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Accumulated Depreciation (straight line) $28,000 (4 years) Original Cost Residual Value Estimated Life Asset Machine A Machine B $60,000 14,200 $11,000 1,925 / years 5 years 7,365 (3 years)