1.ABC Moving and Storage acquired a new truck for $100,000, paying $20,000 cash and signing a promissory note for the balance.According to the bill of sale, ABC also paid cash for sales tax of 8%, plus registration, tags and delivery fees of $400.The new truck is estimated to have a 5-year economic life and a residual (salvage) value of $8,400.ABC uses straight-line depreciation.Due to delays, the truck was not placed in service until April 1, 2020.ABC has a December 31 fiscal year.

a)Prepare journal entries to record the purchase of the truck and related depreciation for 2020.