Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The ltlowing events took place at Pete's Painting Company during 2017 a. January 1, Pete bought a used truck for $16,000. He added a tool chest and side racks for ladders for $5,600. The truck is expected to last four years and then be sold for $1,200. Pete uses straight-line depreciation. b. On January 1, he purchased several items at an auction for $5,175. These items hea Toir market values as follows: 10 cases of paint trays and roller covers $200 2,700 4,000 Storage cabinety Ladders and scaffolding 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 $1,296 for a three-year license to operate the business. d. On September 1, Pete sold an old truck for $4,470 that had cost $11,260 when it was purchased on September 1, 2012. It was expected to last eight and have a s Required: 1. For each situation, determine the value assigned to the asset when it is purchased. For (d), determine the book value when it is sold. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset a. Recorded cost of truck Relevant Value 21,600 Part 1 - recorded amount of supplies b. Part 2 -recordet 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 2. Determine the amount of depreciation or other expense to be recorded for each asset for 2017. Do not round intermediate calculations. If required, round your final answers to the nearest dollar 2. Determine the amount of deprecilation or other expense to be recorded for each asset for 2017. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. 2017 Expense Amount 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) 3. How would these assets appear on the balance sheet as of December 31, 2017 Pete's Painting Company Balance Sheet (Partial) Current assets Prepaid license Property, plant, and equipment: Truck Office furniture Equipment 21,600 Accumulated depreciation Total property, plant, and equipment, net