Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2017 2. On January 1, Pete bought a used truck for $13,000. He added a tool chest and side racks for ladders for 54,400. The truck is expected to last four years and then be sold for $1,000. Pete b. on January 1, he purchased several items at an auction for $3,705. These items had fair market values as follows: 10 cases of paint trays and roller covers Storage cabinets Ladders and scaffolding $300 1,800 3,600 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 $1,332 for a three-year license to operate the business d. On September 1, Pete sold an old truck for $5,460 that had cost $14,090 when it was purchased on September 1, 2012. It was expected to last eight years and have a salvage value of $650 Pete used the straight line method of depreciation. 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 b. Part 1 - recorded amount of supplies b. Part 2 - recorded 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. It required, round your final answers to the nearest dollar Asset 2017 Expense Amount 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 mission to indicate d. Part 1 - old truck depreciation II 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: Q000 0 Total property, plant, and equipment, net