Exercise 1 Assume that Dar Heating and Cooling Co. purchases a heavy-duty washer for $23,000 cash, plus sales taxes of $1,000 and delivery costs of $1,500. The buyer also pays $500 for painting and lettering, $600 for an annual insurance policy, and $100 for a motor vehicle license. The truck estimated useful life 4 years and resale value $3,000 at the end of year 4. The total estimated working hours are 2,000 of which the first year 500 hours, second 1,200 hours, and third year 300 hours. Required: i. Determine the cost of the truck and record the transaction. ii. Compute the depreciation expense, accumulated depreciation, and book value over the useful life applying the three depreciation methods