On January 1 of the current year, the records of Smita Corporation showed the following: Truck (estimated residual value, $9,000) Accumulated depreciation (straight line, two years) On September 30 of the current year, the delivery truck was a total loss as a result of an accident. As the truck was insured, the company collected $15,500 cash from the insurance company on October 5 of the current year. Required: 1. Compute the estimated useful life of the truck. Estimated useful life $ 27,000 6,000 years
On January 1 of the current year, the records of Smita Corporation showed the following: Truck (estimated residual value, $9,000) Accumulated depreciation (straight line, two years) On September 30 of the current year, the delivery truck was a total loss as a result of an accident. As the truck was insured, the company collected $15,500 cash from the insurance company on October 5 of the current year. Required: 1. Compute the estimated useful life of the truck. Estimated useful life $ 27,000 6,000 years
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 1PB: Consider the following situations and determine (1) which type of liability should be recognized...
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![On January 1 of the current year, the records of Smita Corporation showed the following:
Truck (estimated residual value, $9,000)
Accumulated depreciation (straight line, two years)
On September 30 of the current year, the delivery truck was a total loss as a result of an accident. As the truck was insured, the
company collected $15,500 cash from the insurance company on October 5 of the current year.
Required:
1. Compute the estimated useful life of the truck.
Estimated useful life
$ 27,000
6,000
years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58b093e7-c2d8-453e-b1b2-8245010c2a7d%2F23d06033-f933-40ff-a09a-616e3bf4d94d%2Fog4tuq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1 of the current year, the records of Smita Corporation showed the following:
Truck (estimated residual value, $9,000)
Accumulated depreciation (straight line, two years)
On September 30 of the current year, the delivery truck was a total loss as a result of an accident. As the truck was insured, the
company collected $15,500 cash from the insurance company on October 5 of the current year.
Required:
1. Compute the estimated useful life of the truck.
Estimated useful life
$ 27,000
6,000
years
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