O’Callaghan Inc. (OI) is in the highway construction business. OI’s property, plant, and equipment account includes heavy construction equipment. The following transactions relate to the disposal of two of the company’s pieces of equipment.

• Equipment One—OI decided to dispose of one of its pieces of heavy machinery and replace it with a newer, more efficient model. OI received $125,000 cash on the sale of the machine. At the date of the sale, the machine had a net book value of $60,000. The original cost of the equipment was $500,000.
• Equipment Two—OI recognizes the earth scoop separately from the rest of the piece of equipment, since it is a significant part that needs replacing. The scoop was replaced this year at a cost of $200,000. The scoop was depreciated separately. The net book value of the scoop at the date of replacement was $25,000. Its original cost was $110,000.

Required:

Provide the journal entry for the two pieces of equipment.