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 $5,000 The truck is expected to last four years and then be sold for $1,000 Pete uses straight line depreciation On January 1, he purchased several items at an auction for $3,840 These items had fair market values as follows 10 cases of paint trays and roller covers $200 Storage cabinets 1,800 Ladders and scaffolding 4,400 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 On February 1, Pete paid the city $1,836 for a three year license to operate the business On September 1, Pete sold an old truck for $4,690 that had cost $11,790 when it was purchased on September 1, 2012 It was expected to last eight years and have a salvage value of $750 Pete used the straight line method of depreciation 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 Relevant Value a Recorded cost of truck A b Part 1 recorded amount of supplies A b Part 2 recorded cost of office furniture A b Part 3 recorded cost of equipment A c Recorded cost of prepaid license A d Book value of truck at time of sale A 2017 Expense Amount Asset a Truck depreciation A b Part 1 supplies expense A b Part 2 office furniture depreciation A b Part 3 equipment depreciation A c License amortization A d Part 1 old truck depreciation A 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) December 31, 2017 Current assets Property, plant, and equipment Total property, plant, and equipment, net

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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

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 $5,000. The truck is expected to last four years and then be sold for $1,000. Pete uses straight-line depreciation.
On January 1, he purchased several items at an auction for $3,840. These items had fair market values as follows:

10 cases of paint trays and roller covers $200

Storage cabinets 1,800

Ladders and scaffolding 4,400

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.
On February 1, Pete paid the city $1,836 for a three-year license to operate the business.
On September 1, Pete sold an old truck for $4,690 that had cost $11,790 when it was purchased on September 1, 2012. It was expected to last eight years and have a salvage value of $750. Pete used the straight line method of depreciation.

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.

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Asset Relevant Value a. Recorded cost of truck A b. Part 1 - recorded amount of supplies A b. Part 2 - recorded cost of office furniture A b. Part 3 - recorded cost of equipment A c. Recorded cost of prepaid license A d. Book value of truck at time of sale A 2017 Expense Amount Asset a. Truck depreciation A b. Part 1 - supplies expense A b. Part 2 - office furniture depreciation A b. Part 3 - equipment depreciation A c. License amortization A d. Part 1 - old truck depreciation A 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) December 31, 2017 Current assets: Property, plant, and equipment: Total property, plant, and equipment, net