On January 1, 2015, the records of Sitake Corporation showed the following regarding a truck:
Equipment (estimated residual value, $9,000) ..... $25,000
Accumulated depreciation (straight-line, three years) .. 6,000
On December 31, 2015, the delivery truck was a total loss as the result of an accident.
1. Based on the data given, compute the estimated useful life of the truck.
2. Give all journal entries with respect to the truck on December 31, 2015. Show computations.