E8-18 (Algo) Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line Depreciation) LO8-3, 8-5 On January 1 of the current year, the records of Khouri Corporation showed the following regarding a truck: Equipment (estimated residual value, $9,788) Accumulated depreciation (straight-line, three years) $ 35,600 11,100 On December 31 of the current year, the delivery truck was a total loss as the result of an accident. Required: 1. Based on the data given, compute the estimated useful life of the truck that was used for recording depreciation. 2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverage on the truck. 3. Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Note: If there is no gain or loss, select "NA" and do not input an amount. Loss < Required 2 Required 3 >
E8-18 (Algo) Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line Depreciation) LO8-3, 8-5 On January 1 of the current year, the records of Khouri Corporation showed the following regarding a truck: Equipment (estimated residual value, $9,788) Accumulated depreciation (straight-line, three years) $ 35,600 11,100 On December 31 of the current year, the delivery truck was a total loss as the result of an accident. Required: 1. Based on the data given, compute the estimated useful life of the truck that was used for recording depreciation. 2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverage on the truck. 3. Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Note: If there is no gain or loss, select "NA" and do not input an amount. Loss < Required 2 Required 3 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:E8-18 (Algo) Inferring Asset Age and Recording Accidental Loss on a Long-Lived Asset (Straight-Line
Depreciation) LO8-3, 8-5
On January 1 of the current year, the records of Khouri Corporation showed the following regarding a truck:
Equipment (estimated residual value, $9,788)
Accumulated depreciation (straight-line, three years)
$ 35,600
11,100
On December 31 of the current year, the delivery truck was a total loss as the result of an accident.
Required:
1. Based on the data given, compute the estimated useful life of the truck that was used for recording depreciation.
2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverage
on the truck.
3. Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident,
determine whether there was a gain or loss for the disposal and what the associated amount was.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Assuming Khouri had casualty insurance on the truck and received $16,400 from the insurance company for the accident,
determine whether there was a gain or loss for the disposal and what the associated amount was.
Note: If there is no gain or loss, select "NA" and do not input an amount.
Loss
< Required 2
Required 3 >
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