Problem 2. Phil Co. has delivery equipment that cost $$4,000 in January 1, 2014. The delivery equipment is expected to have a useful life of 10 years with a salvage of $4,000. Phil uses a straight-line depreciation method. Instructions Record entries for the disposal of the delivery equipment on July 1, 2018 under the following assumptions. (a) It was scrapped as having no value. (b) It was sold for $37,000. (c) It was sold for S 18,000. Problem 3. During 2018 Federal Express reported the following information (in millions): net sales of $24,710 and net income of $838. Its balance sheet also showed total assets at the beginning of the year of S15,385 and total assets at the end of the year of $19,134. Instructions Calculate the (a) asset turnover ratio and (b) return on assets ratio