PA9-5 Recording Transactions and Adjustments for Tangible and Intangible Assets [LO1, LO2, LO3, LO4, LO9-5, LO9-6] The following transactions and adjusting entries were completed by Gravure Graphics International, a paper-packaging company. The company uses straight-line depreciation for trucks and other vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for patents. Watch the dates carefully as some assets may only be depreciated for the part of the year they were used. January 2, 2019 Paid $95,000 cash to purchase storage shed components. January 3, 2019 Paid $5,000 cash to have the storage shed erected; storage shed has an estimated life of ten years and a residual value of $10,000. April May July 1, 2019 Paid $38,000 cash to purchase a pickup truck for use in the business; truck has an estimated useful life of five years and a residual value of $8,000. 13, 2019 Paid $250 cash for repairs to the pickup truck. 1, 2019 Paid $20,000 cash to purchase patent rights on a new paper bag manufacturing process; patent is estimated to have a remaining useful life of five years. December 31, 2019 Recorded depreciation and amortization on the pickup truck, storage shed, and patent. June 30, 2020 Sold the pickup truck for $33,000 cash. (Record the depreciation on the truck prior to recording its disposal.) December 31, 2020 Recorded depreciation on the storage shed; determined that the patent was impaired and wrote off its remaining book value. (i.e., wrote down the book value to zero. You do not need to record depreciation on the patent prior to writing it off.)