(1) Prepare journal entries to record the following transactions of a newly setup company during the current year: IJan Purchased used office equipment for $14,700 cash. Sales tax was $825, freight costs $250, and reconditioning costs $900, all of which were paid in cash. The estimated useful life of the equipment is 5 years and residual value is $500. Ofce equipments are to be de-reciated usin_ the declinin_ balance method. Purchased a garage from a neighboring business with a 7%, 4-year, $75,000 note. The seller's carrying amount for the garage was $42,750. The estimated remaining useful life of the garage is 10 years with no residual value. Garage is to be depreciated using the strai ht line method. Purchased a truck for $30,000 with a 5-year useful life and a $5,000 residual value. Also paid 6% sales tax, $500 to paint the truck with the company's logo and name, and $1,500 for spare parts. All payments were in cash. The management has decided to depreciate Trucks using the units of production method. The total mileage estimated to be driven by the truck is 100,000km. For the current year, the total mileage driven by the truck was 10,000km. Paid $1,000 cash to replace (uninsured) garage windows broken durin_ a storm. Purchased store equipment for $24,500 cash. Paid $1,470 in sales tax, $550 for repairs incurred from an accident during installation, $3,200 for a special base to house the equipment, and $2,600 for supplies to be used during periodic preventive maintenance. The estimated useful life of the equipment is 8 years and residual value is $1,200. Store equipments are to be depreciated using the straight line method. Record depreciation for all the property, plant and equipments. (2) Based on the information given in (1), did the seller of the Garage make any gain or loss from the disposal? If yes, determine the amount of gain or loss made. (Round up all your answers to the nearest dollar.)