3. How would these assets appear on the balance sheet as of December 31, 2012? 2. Determine the amount of depreciation or other expense to be recorded for each asset for 2012. Enter all amounts as positive numbers except if there is a loss in part d. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset a. Truck depreciation b. Part 1 - supplies expense b. Part 2 - office furniture depreciation b. Part 3 - equipment depreciation c. License amortization d. Part 1 - old truck depreciation d. Part 2 - gain/loss on the sale (use the minus sign to indicate a loss) 2012 Expense Amount Problem 8-6 (Algorithmic) Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2012: a. On January 1, Pete bought a used truck for $14,000. He added a tool chest and side racks for ladders for 54,800. The truck is expected to last four years and then be sold for 5800. Pete uses straight-line depreciation. b. On January 1, he purchased several items at an auction for $6,205. These items had fair market values as follows: 10 cases of paint trays and roller covers $200 Storage cabinets 2,700 Ladders and scaffolding 4,400 Pete will use all of the paint trays and roller covers this year. The storage cabinets are expected to last nine years; the ladders and scaffolding, four years. c. On February 1, Pete paid the city 51,404 for a three-year license to operate the business. d. On September 1, Pete sold an old truck for $5,560 that had cost 514,190 when it was purchased on September 1, 2007. It was expected to last eight years and have a salvage value of 5750. Required: 1. For each situation, determine the value assigned to the asset when it is purchased [or for (d), the book value when sold]. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset a. Recorded cost of truck b. Part 1 - recorded amount of supplies b. Part 2 - recorded cost of office furniture b. Part 3 - recorded cost of equipment c. Recorded cost of prepaid license d. Book value of truck at time of sale Relevant Value 3. How would these assets appear on the balance sheet as of December 31, 2012? 2. Determine the amount of depreciation or other expense to be recorded for each asset for 2012. Enter all amounts as positive numbers except if there is a loss in part d. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset a. Truck depreciation b. Part 1 - supplies expense b. Part 2 - office furniture depreciation b. Part 3 - equipment depreciation c. License amortization d. Part 1 - old truck depreciation d. Part 2 - gain/loss on the sale (use the minus sign to indicate a loss) 2012 Expense Amount Problem 8-6 (Algorithmic) Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2012: a. On January 1, Pete bought a used truck for $14,000. He added a tool chest and side racks for ladders for 54,800. The truck is expected to last four years and then be sold for 5800. Pete uses straight-line depreciation. b. On January 1, he purchased several items at an auction for $6,205. These items had fair market values as follows: 10 cases of paint trays and roller covers $200 Storage cabinets 2,700 Ladders and scaffolding 4,400 Pete will use all of the paint trays and roller covers this year. The storage cabinets are expected to last nine years; the ladders and scaffolding, four years. c. On February 1, Pete paid the city 51,404 for a three-year license to operate the business. d. On September 1, Pete sold an old truck for $5,560 that had cost 514,190 when it was purchased on September 1, 2007. It was expected to last eight years and have a salvage value of 5750. Required: 1. For each situation, determine the value assigned to the asset when it is purchased [or for (d), the book value when sold]. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset a. Recorded cost of truck b. Part 1 - recorded amount of supplies b. Part 2 - recorded cost of office furniture b. Part 3 - recorded cost of equipment c. Recorded cost of prepaid license d. Book value of truck at time of sale Relevant Value