Application Questions (5 marks A) Answer each question in the space provided. 1. Sam's Sandwiches has a December 31, 2021 year end. On January 1, 2021. Som has a car with a cost of $40,000 and accumulated amortization of $18,000. The car was expected to have a residual value of $4,000 and a useful life of 4 years. Sam uses straight line amortization. Same plans to replace its delivery car on April 1, 2021, and is considering two alteratives. SHOW YOUR WORK BELOW EACH JOURNAL ENTRY! 1. Som has been offered $21.000 cash (fair market value) from Joseph for the old car. If Sam accepts this offer. Sam would then purchase a replacement from a car dealership for $50,000 cash. (2 separate transactions) I 2. Trade the old car for a new one (sticker price of $50,000). The dealer will allow a $19.000 trade in allowance on the old car. (ONE transaction) Instructions: (a) Record the updated amortization on the old car to April 1, 2021. (1 mark) DATE PARTICULARS P.R DEBIT CREDIT Work: 5 5. (4 marks) Option 1: DATE PARTICULARS P.R. DEBIT CREDIT 1 Work Option 2: DATE PARTICULARS PR DEBIT CREDIT wa