hw questions (2 part)

Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2017: a. On January 1, Pete bought a used truck for $15,000. 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 $1,000. Pete uses straight-line depreciation. b. On January 1, he purchased several items at an auction for $4,640. These items had fair market values as follows: 10 cases of paint trays and roller covers $300 Storage cabinets 2,700 Ladders and scaffolding 2,800 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 $1,908 for a three-year license to operate the business. d. On September 1, Pete sold an old truck for $5,350 that had cost $16,210 when it was purchased on September 1, 2012. It was expected to last eight years and have a salvage value of $850. 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. Relevant Value Asset a. Recorded cost of truck b. Part 1 - recorded amount of supplies b. Part 2 - recorded cost of office furniture Previous Check My Work 1207 AI do TE 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. If required, round your final answers to the nearest dollar. 2017 Expense Asset 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 minus sign to indicate a loss) Feedback Check My Work Determine value at time of purchase. Use the fair market values of the supplies expense, office furniture and equipment at the time of purchase. Determine value of prepaid license. Previous Check My Work