ollege Accounti 2 Test Question 4 (10 marks) A truck was purchased on September 1, 2018, at a cost of $50,800. The expected life of this truck was 7 years with a $10,200 salvage value. The company uses the straight-line method of depreciation and has a October 31 fiscal year-end. On June 1, 2020, the company traded in the truck on the purchase of a new truck with a list price of $68,000. A trade-in allowance of $30,000 was granted on the old truck and the balance was paid in cash. Required: Calculate a) the book value of the old truck and b) the cash payment. 1. 2. Prepare the journal entry to record the trade-in.