Joe Heffernan decided to start a snow removal business in his neighbourhood, which he called Snow Care. He invested his used truck into the business on November 1, 2020 had purchased the truck on November 1, 2017, for $17,600. He looked up the fair market value of his truck on a popular web site and arrived at a value for his true of $9.700d November 1, 2020. At that time, he used $2,700 from his savings account to pay for the overhaul needed in order to prepare the truck for pushing a heavy low. Then, ter Investing additional cash into the business, Snow Care was able to purchase, on November 5, a brand new snow plow to be attached to the truck at a cost of $5,850. The part to attach and operate the plow cost $2,000. In order to operate the truck on the streets, Joe was required to upgrade his driver's licence at a cost of $420 per year (535 per month), add commercial use to his true nace at $2,200 per month, and purchase a $2,680 business licence that was valid for one year Based on its seasonal operations, Joe determined that his business should depreciate the truck and plow using the units of production method. When making this decision, Joel considered the estimate of the residual values of these two assets. He believes that the truck will last another four years and be driven a total of 65,000 kilometres at which timet could be sold for $700. In the case of the plow, estimated units of production will also be 65.000 kilometres and the residual value is expected to be $2,000, after four years of use Snow Care used the truck for 5,000 kilometres in the fiscal year ended December 31, 2020 and 16,700 kilometres during the fiscal Year ended December 31, 2021. What costs should Snow Care use to record the investment of the truck and the purchase of the plow? Cost of the truck: Costs to prepare the truck for use 9700 Value of the truck when transferred Total cost Purchase of the plow: one in its Reserved. A Division of the Wilson