E$8-18($Algo$)$ Inferring Asset Age and Recording Accidental Loss on a Long$-$Llved Asset $($Stralght$-$LIne

Depreclatlon$)$ LO$8-3,8\mathrm{.}5$

On January $1$ of the current year, the records of Khouri Corporation showed the following regarding o truck:

Equipment $($estimated residual value, $$9,7e0)$

$$35,6BB$

Accumulated depreciation $($straight$-$line, three years$)$

$11,108$

On December $31$ of the current year, the delivery truck was a total loss as the result of an accident.

Required:

Bosed on the dots given, compute the estimsted useful life of the truck that was used for recording deprecistion.

Prepare sll journal entries with respect to the truck on December $31$ of the current year, ossuming there wos no insuronce coveroge

on the truck.

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.

Complete this question by entering your answers in the tabs below.

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.

Note: If no entry is required for a transaction$/$event$,$ select. $"$No journal entry required" in the first account field.

Journal entry worksheet

Record the depreciation of the truck.

Note: Enter debits before cred ts$.$