Inferring Asset Age and Recording Accidental Loss on a Long Lived Asset (Straight Line Depreciation) On January 1, 2012, the records of Seward Corporation showed the following regarding a truck:
|
Equipment (estimated residual value, $8,000) |
$18,000 |
|
Accumulated depreciation (straight line, three years) |
6,000 |
On December 31, 2012, 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, 2012. Show computations.