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. Joe 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 truck of $7,600 as of November 1, 2020. At that time, he used $3,000 from his savings account to pay for the overhaul needed in order to prepare the truck for pushing a heavy plow. Then, after 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 $5,280. The apparatus to attach and operate the plow cost $1,200. In order to operate the truck on the streets, Joe was required to upgrade his driver's licence at a cost of $960 per year ($80 per month), add commercial use to his truck insurance at $2,500 per month, and purchase a $480 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, Joe also 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 66,000 kilometres, at which time it could be sold for $700. In the case of the plow, estimated units of production will also be 66,000 kilometres and the residual value is expected to be $1,200, after four years of use. Snow Care used the truck for 2,800 kilometres in the fiscal year ended December 31, 2020 and 14,800 kilometres during the fiscal year ended December 31, 2021. Your answer is correct. 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 3000 Value of the truck when transferred 7600 Total cost 10600 Purchase of the plow: Purchase cost 5280 Costs to prepare the equipment for use 1200 Total cost 6480 LINK TO TEXT Your answer is correct. Prepare the journal entries for the investment of the truck and the cash purchase of the plow. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Nov. 1, 2020 T Vehicles 10600 J. Heffernan, Capital 10600 Nov. 5, 2020 T Equipment 6480 Cash 6480 Prepare a schedule for the calculation of the depreciation expense, the accumulated depreciation, and the carrying amount of Snow Care's assets for two fiscal years. (Round per kilometre cost to 2 decimal places, e.g. 52.75.) Depreciation Schedule: Units-of-Production method Year End Number of Units Calculation Depreciation amount per unit Year Depreciation Expense Accumulated Depreciation Carrying Amount Vehicles 2020 2,800 0.19 2021 14,800 0.19 OOO ON Equipment 2020 0.11 2021 0.11 Prepare the adjusting journal entries for depreciation of the assets for the fiscal years ended December 31, 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit X X (To record depreciation expense for truck) x! X x (To record depreciation expense for equipment) X (To record depreciation expense for truck) x! X X (To record depreciation expense for equipment) Provide the balance sheet disclosure of Snow Care's long-lived assets at December 31, 2021. (List Property, plant and equipment in order of vehicles and equipment.) SNOW CARE Balance Sheet (Partial) V TAMA 0 0 x Snow Care is considering using the double diminishing balance method instead of the units of production method. Prepare a depreciation schedule using double diminishing balance to show depreciation expense, accumulated depreciation, and carrying amount for the truck each year until it is fully depreciated. (Round answers to 0 decimal places, e.g. 5,275.) Depreciation Schedule: diminishing balance method Calculation Year End Depreciable amount X Year Depreciation Rate Depreciation Expense Accumulated Depreciation Carrying Amount Vehicles 2020 X 2021 2022 ciddi oldu! odado Dogod ONIONO 2019 2020