8. The WTF company has a truck that was totalled when a flock of herons ran across the road and the driver slammed on the breaks and skidded into a farmers field and hit two cows and a turkey. They need to buy a new truck. The dealer will give them a $1,000 trade in value on the totalled truck if they agree to clean the turkey feathers out of the grill. They choose to buy a new truck which has a sticker price of $52,000. They pay $20,000 in cash and take out a note for the remaining amount they owe. The totalled truck was originally purchased for $32,000 and has accumulated depreciation of $30,000. Answer the following questions about this situation. BTW: The turkey lived...for now! Turkey's useful life ends November 28, 2013 a) What is the gain or loss on the trade-in of the totalled truck? b) What is the S amount of the Note Payable? c) What is the $ amount the new truck will be recorded at? d) Produce the journal entry to record this transation 9. The Curl up & Dye Hair Salon has died. It must liquidate it's assets. It has a building it must sell that originally cost $150,000. As of the sale date, the accumulated depreciation account had a balance of $40,000. The Luna Sea Tanning Salon agrees to buy the building for $310,000 CASH!!!!! Produce the journal entry to record this transaction for Curl Up & Dye. 10. The Jurassic Pork company has just bought a tract of land on which they plan to raise their pigs. While they were digging a foundation for their new barn, they struck oil. So they sold the pigs and prepared to drill for oil. The land cost them $700,000 and will be worth $300,000 when they are done with it. They expect to produce 1,000,000 barrels of oil over the life of this project. If in the first year they drill and sell 200,000 barrels of oil, what amount of depletion expense will they record? 1. The Whatever Corp. purchased equipment on March 1, 2013 as follows: Equipment Cost Shipping costs Estimated Salvage Value Estimated Useful Life Life time units of Production $260,000 $10,000 $25,000 10 1,000,000