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Question 4: Long-Term Assets [25 minutes; 26 points] Seattle-Cab Inc. owns a vehicle that was purchased on January 1, 2007 for $45,000. The vehicle has been depreciated using the straight-line method over 10 years and has a residual value of $5,000. On September 30, 2015, Seattle-Cab sold it for $7,000 cash. The following day, October 1, Seattle-Cab bought a new vehicle for $50,000 by signing an 8%, four-year bank loan. Principal and interest are due at maturity. Additional costs incurred: an insurance premium for one year, $1,500; and preparation charges (i.e., registration, licence plate) for $3,000, all paid for in cash. Seattle-Cab depreciates the new vehicle using the double-declining-balance method over five years. The new vehicle has an estimated residual value of $6,000. Required (show all your calculations to receive full grade): 1. Prepare the journal entries to record the sale of the old vehicle on Sept. 30 (10 points] 2. Prepare the journal entries to record the purchase of the new vehicle on Oct.1 [6 points) 3. Prepare all the necessary adjusting entry at fiscal year-end Dec 31, 2015. [10 points]