On January l of the current year, the records of Sitake Corporation showed the following regarding a

Question:

On January l of the current year, the records of Sitake Corporation showed the following regarding a truck:

Equipment (estimated residual value. $9,000)............................ $25,000

Accumulated depreciation (straightdine, three years)................... 6,000

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.

2. Give all journal entries with respect to the truck on December 31 of the current year. Show computations.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...