We had a large hail storm where I work that caused damage to the roof of our building, some HVAC equipment and our maintenance shop. We received the insurance check and now I'm trying to figure out how to record it. I know the check is just recorded as a gain, but what I can't figure out is the loss on the assets. Our HVAC equipment is just being repaired, so from what I've read it looks like I just need to expense those repairs. The part I'm having trouble with is figuring out the roof of our building and our maintenance shop. For the building we're re-shingling the entire roof. I know what we originally paid when the building was built a couple years ago, so do I just need to subtract that amount along with the depreciation from the balance sheet and record the loss? For the maintenance shop we're replacing the roof and the siding. The building was built in 1987 so I don't have any records on any of it, just the original cost for the entire building on our asset listing. How would I go about determining the amount that needs to be removed from the balance sheet and recorded as a loss?
