Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2017: On January 1, Pete bought a used truck for $14,000. He added a tool chest and side racks for ladders for $4,800. The truck is expected to last four years and then be sold for $1,200. Pete uses straight-line depreciation. On January 1, he purchased several items at an auction for $4,080. These items had fair market values as follows: 10 cases of paint trays and roller covers $200 Storage cabinets 900 Ladders and scaffolding 4,000 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. On February 1, Pete paid the city $1,620 for a three-year license to operate the business. On September 1, Pete sold an old truck for $5,950 that had cost $15,200 when it was purchased on September 1, 2012. It was expected to last eight years and have a salvage value of $800. Pete used the straight line method of depreciation