Question: Millworks Company owns a milling machine that cost $125,000 and has accumulated depreciation of $91,000. Prepare the entry to record the disposal of the milling machine on January 5 under each of the following independent situations.
1. The machine needed extensive repairs, and it was not worth repairing. Millworks disposed of the machine, receiving nothing in return.
2. Millworks sold the machine for $17,500 cash.
3. Millworks sold the machine for $34,000 cash.
4. Millworks sold the machine for $40,000 cash.