On January 1 2015 the records of Sitake Corporation showed
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.

Required:
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.

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