Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation Problem 8.6 The following events took place at Petes Painting Company during 2008: a. 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 $ 800. Pete uses straight- line depreciation. b. On January 1, he purchased several items at an auction for $ 2,400. These items had fair market values as follows: 10 cases of paint trays and roller covers $ 200 Storage cabinets $600 Ladders and scaffolding $2,400 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 $ 1,500 for a three- year license to operate the business. d. On September 1, Pete sold an old truck for $ 4,800. The truck had cost $ 12,000 when it was pur-chased on September 1, 2003. It had been expected to last eight years and have a salvage value of $ 800. Please answer the following question 1. For each situation, explain the value assigned to the asset when it is purchased [ or for ( d), the book value when sold]. Determine the amount of depreciation or other expense to be recorded for each asset for 2008. How would these assets appear on the balance sheet as of December 31, 2008