On December 31, 2014, Travis Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows.

Machine	$1,300,000
Less: Accumulated depreciation	360,000
Book value	$940,000

Depreciation is computed at $60,000per year on a straight-line basis.

A.)

A fire completely destroys the machine on August 31, 2015. An insurance settlement of $430,000was received for this casualty. Assume the settlement was received immediately.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) B.)

On April 1, 2015, Tritt sold the machine for $1,040,000to Dwight Yoakam Company.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) C.)

On July 31, 2015, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,100,000.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (To record current depreciation.)To record loss of the machine.)

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

Exercise 10-24 On December 31, 2014, Travis Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,300,000 360,000 $940,000 Depreciation is computed at $60,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2015. An insurance settlement of $430,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date August 31, 2015 Account Titles and Explanation Depreciation E Accumulated D (To record current depreciation.) August 31, 2015 Loss on Dispo Cash Accumulated D Machinery (To record loss of the machine.) SHOW LIST OF ACCOUNTS LINK TO TEXT Debit Credit Your answer is incorrect. Try again. On April 1, 2015, Tritt sold the machine for $1,040,000 to Dwight Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit April 1, 2015 (To record current depreciation.) April 1, 2015 (To record sale of the machine.) SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is incorrect. Try again. On July 31, 2015, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,100,000.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation July 31, 2015 (To record current depreciation.) July 31, 2015 Debit Credit (To record donation of the machine.)