Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each truck are described below.
								1.	Truck #1
			List price			$ 15,000
			Cash acquisition cost			13,900
	2.	Truck #2
			List price			$ 16,000
			Acquisition cost
			Cash down payment			2,000
			Face amount of zero-interest bearing note assumed			14,000
			Note due date			April 1, 2018
			Normal interest rate for this borrowing			10%
			Incremental borrowing rate			8%
	3.	Truck #3
			List price			$ 16,000
			Acquired in exchange for a computer system that Clarkson carries in inventory
			Cost of computer system in inventory			12,000
			Normal selling price of computer system by Clarkson			15,200
			Inventory system used by Clarkson			Perpetual
	4.	Truck #4
			List price			$ 14,000
			Acquired in exchange for common stock in Clarkson Corporation			1,000 shares
			Par value of common stock per share			$ 10.00
			Market value of common stock per share			$ 13.00
Instructions:
Prepare the appropriate journal entries for the above transactions for Clarkson Corporation.
					Debit	Credit
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	2	Hint: Use the Excel Present Value formula.
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