Ch9: Plant Assets Assignment DO IT! 9-1 Yockey Company purchased a delivery truck. The total cash payment was 27,820 including the following items. Negotiated purchase price 24,000 Installation of special shelving 1,100 Painting and lettering 780 Motor vehicle license 140 Annual insurance policy 500 Sales tax 1,300 Total paid 27,820 Instructions: 1. Explain how each of these costs would be accounted for. Hint (Explain whether an operating expense or an asset cost), and 2. Determine the cost of purchasing the truck. DuPage Company purchases a factory machine at a cost of 18,000 on January 1, 2014. DuPage expects the machine to have a residual value of 2,000 at the end of its 4-year useful life. During its useful life, the machine is expected to be used 160,000 hours. Actual annual hourly use was 2014, 40,000; 2015, 60,000; 2016, 35,000; and 2017, 25,000. Instructions Prepare depreciation schedules for the following methods: (a) straight-line, (b) units-of- activity, and (c) declining-balance using double the straight-line rate. E9-12 Francis Company owns equipment that cost $50,000 when purchased on January 1, 2011. It has been depreciated using the straight-line method based on estimated residual value of $8,000 and an estimated useful life of 5 years. Instructions Prepare Francis Company's journal entries to record the sale of the equipment in these four independent situations. (a) Sold for $28,000 on January 1, 2014. (b) Sold for $28,000 on May 1, 2014. (c) Sold for $11,000 on January 1, 2014. (d) Sold for $11,000 on October 1, 2014