PA9-4 Recording Transactions and Adjustments for Tangible and Intangible Assets The following transactions and adjusting entries were completed by a paper-packaging called Gravure Graphics International during 2015 and 2016. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings. and straight-line amortization for patents. LO 9-1, 9-2, 9-4, 9-5,9-6 company LEVEL UP Paid $95,000 cash to purchase storage shed components. January 2, 2015 January 3, 2015 Paid $5,000 cash to have the storage shed erected. The storage shed has an estimated life of 10 years and a residual value of $10,000. Paid $38,000 cash to purchase a pickup truck for use in the busi- ness. The truck has an estimated useful life of five years and a residual value of $8,000 April 1, 2015 Paid $250 cash for repairs to the pickup truck. May 13, 2015 July 1, 2015 Paid $20,000 cash to purchase patent rights on a new paper bag manufacturing process. The patent is estimated to have a remain- ing useful life of five years. Recorded depreciation and amortization on the pickup truck, stor- age shed, and patent. December 31, 2015