Required information AP8-5 (Algo) Recording and Interpreting the Disposal of Three Long-Lived Assets LO8-3, 8-5 [The following information applies to the questions displayed below.] During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the asset accounts reflected the following: Asset Machine A Machine B Machine C AP8-5 Part 1 Original Cost $26,000 19,500 69,200 Residual Value $4,000 6,000 5,200 a. Machine A. b. Machine B. c. Machine C. Estimated Life 5 years 20 years 14 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,750 cash. b. Machine B: Sold on December 31 for $12,000; received cash, $4,000, and a $8,000 interest-bearing (10 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident and was scrapped. Accumulated Depreciation (straight line) $20,500 (4 years) 5,025 (7 years) 50,000 (12 years), Required: 1. Give all journal entries related to the disposal of each machine in the current year.