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On December 31, 2014, Travis Tritt Inc. has a machine with a book value of $1,776,600. The original cost and related accumulated depreciation at this date are as follows.

Machine $2,457,000

Less: Accumulated depreciation 680,400

Book value $1,776,600

Depreciation is computed at $113,400 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. Collapse question part (a) A fire completely destroys the machine on August 31, 2015. An insurance settlement of $812,700 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.)

A fire completely destroys the machine on August 31, 2015. An insurance settlement of $812,700 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.)

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