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4. On January 2, 2010, a company purchased a delivery truck for $45,000 cash. The truck had an estimated useful life of seven years and

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4. On January 2, 2010, a company purchased a delivery truck for $45,000 cash. The truck had an estimated useful life of seven years and an estimated salvage value of $3,000. The straight-line method of depreciation was used. Prepare the journal entries to record depreciation expense and the disposition of the truck on September 1, 2014, under each of the following assumptions: 1. The truck and $45,000 cash were given in exchange for a new delivery truck that had a cash price of $60,000. This transaction has commercial substance. IL The truck and $40,000 cash were exchanged for a new delivery truck that had a cash price of $60,000. This transaction has commercial substance. 5. A company purchased land with a building for a lump-sum cost of $2,570,000 ($500,000 paid in cash and the balance on a long-term note). It was estimated that the land and building had market values of $600,000 and $2,400,000, respectively. 1. Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition. 6. A company purchased mining property for $4,875,000 containing an estimated 15,000,000 tons of ore. In Year 1. it mined 689,000 tons of ore and in Year 2, it mined 935,000 tons. Calculate the depletion expense for Year 1 and Year 2 and determine the book value of the property at the end of Year 2. 7. A company traded an old forklift for a new forklift, receiving a $13,500 trade-in allowance and paying the remaining S47,200 in cash. The old forklift had cost $43.000, a 5-year useful life and a $5,000 salvage value. Straight-line accumulated depreciation of $27,200 had been recorded as of the exchange date. a. What was the book value of the old forklift on the date of the exchange? b. What amount of gain or loss (indicate which) should be recognized in recording the exchange, assuming the transaction has commercial substance? c. What amount should be recorded as the cost of the new forklift

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