On January 2, 2013, Bering Co. disposes of a machine costing $ 44,000 with accumulated depreciation of $ 24,625. Prepare the entries to record the disposal under each of the following separate assumptions.

1. The machine is sold for $ 18,250 cash.

2. The machine is traded in for a newer machine having a $ 60,200 cash price. A $ 25,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange lacks commercial substance.

3. The machine is traded in for a newer machine having a $ 60,200 cash price. A $ 15,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.