Exercise 10-24On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows.Machine $1,872,000Less: Accumulated depreciation 518,400Book value $1,353,600Depreciation is computed at $86,400 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. Your answer is partially correct. Try again. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 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.)DateAccount Titles and ExplanationDebitCreditAugust 31, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount enter an account title to record current depreciation enter a debit amount enter a credit amount (To record current depreciation.) August 31, 2021enter an account title to record loss of the machine enter a debit amount enter a credit amount enter an account title to record loss of the machine enter a debit amount enter a credit amount enter an account title to record loss of the machine enter a debit amount enter a credit amount enter an account title to record loss of the machine enter a debit amount enter a credit amount (To record loss of the machine.) SHOW LIST OF ACCOUNTSLINK TO TEXT Your answer is partially correct. Try again. On April 1, 2021, Vaughn sold the machine for $1,497,600 to 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.)DateAccount Titles and ExplanationDebitCreditApril 1, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount enter an account title to record current depreciation enter a debit amount enter a credit amount (To record current depreciation.) April 1, 2021enter an account title to record sale of the machine enter a debit amount enter a credit amount enter an account title to record sale of the machine enter a debit amount enter a credit amount enter an account title to record sale of the machine enter a debit amount enter a credit amount enter an account title to record sale of the machine enter a debit amount enter a credit amount (To record sale of the machine.) SHOW LIST OF ACCOUNTSLINK TO TEXT Your answer is partially correct. Try again. On July 31, 2021, 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 $1,584,000. (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.)DateAccount Titles and ExplanationDebitCreditJuly 31, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount enter an account title to record current depreciation enter a debit amount enter a credit amount (To record current depreciation.) July 31, 2021enter an account title to record donation of the machine enter a debit amount enter a credit amount enter an account title to record donation of the machine enter a debit amount enter a credit amount enter an account title to record donation of the machine enter a debit amount enter a credit amount enter an account title to record donation of the machine enter a debit amount enter a credit amount (To record donation of the machine.) Click if you would like to Show Work for this question:Open Show Work

Question

Exercise 10-24On December 31, 2020, Vaughn Inc. has a machine with a book value of $1,353,600. The original cost and related accumulated depreciation at this date are as follows.Machine $1,872,000Less: Accumulated depreciation 518,400Book value $1,353,600Depreciation is computed at $86,400 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.       Your answer is partially correct.  Try again.  A fire completely destroys the machine on August 31, 2021. An insurance settlement of $619,200 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 &#34;No Entry&#34; for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditAugust 31, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount  enter an account title to record current depreciation enter a debit amount enter a credit amount  (To record current depreciation.)  August 31, 2021enter an account title to record loss of the machine enter a debit amount enter a credit amount  enter an account title to record loss of the machine enter a debit amount enter a credit amount  enter an account title to record loss of the machine enter a debit amount enter a credit amount  enter an account title to record loss of the machine enter a debit amount enter a credit amount  (To record loss of the machine.)    SHOW LIST OF ACCOUNTSLINK TO TEXT     Your answer is partially correct.  Try again.  On April 1, 2021, Vaughn sold the machine for $1,497,600 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select &#34;No Entry&#34; for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditApril 1, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount  enter an account title to record current depreciation enter a debit amount enter a credit amount  (To record current depreciation.)  April 1, 2021enter an account title to record sale of the machine enter a debit amount enter a credit amount  enter an account title to record sale of the machine enter a debit amount enter a credit amount  enter an account title to record sale of the machine enter a debit amount enter a credit amount  enter an account title to record sale of the machine enter a debit amount enter a credit amount  (To record sale of the machine.)    SHOW LIST OF ACCOUNTSLINK TO TEXT     Your answer is partially correct.  Try again.  On July 31, 2021, 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 $1,584,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select &#34;No Entry&#34; for the account titles and enter 0 for the amounts.)DateAccount Titles and ExplanationDebitCreditJuly 31, 2021enter an account title to record current depreciation enter a debit amount enter a credit amount  enter an account title to record current depreciation enter a debit amount enter a credit amount  (To record current depreciation.)  July 31, 2021enter an account title to record donation of the machine enter a debit amount enter a credit amount  enter an account title to record donation of the machine enter a debit amount enter a credit amount  enter an account title to record donation of the machine enter a debit amount enter a credit amount  enter an account title to record donation of the machine enter a debit amount enter a credit amount  (To record donation of the machine.)    Click if you would like to Show Work for this question:Open Show Work

Accepted Answer

Depreciation Expenses till August 31, 2021 = Annual depreciation x 8/12
= $86,400*8/12
= $57,600…