Cost of Assets The following events took place at Pete's Painting Company during 2017 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 t Book Values, eet Presentation 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 Storage cabinets 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. $200 600 2,400 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 that had cost $12,000 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. Required: s ssigned to the asset when it is purchased. For (d), determine the book value when it is sold. Do not round intermediate calculations 1. For each situation, determine the value a Asset Relevant Value a. Recorded cost of truck b. Part 1- recorded amount of supplies .Part 2-recorded cost of office furniture b. Part 3-recorded cost of equipment e. Recorded cost of prepaid lcense Previous Next