Property, Plant, and Equipment Assignment Part A Toy Train, Inc. budgeted to purchase one car in 2014. nfortunately, three cars needed to be replaced to buy one and lease two others. The paragraphs below describe the disposition of three cars and the details about replacements. April the President BMw 525 was traded for a new BMw 528. The new car averages 28 mpg and comes with a 4 year maintenance agreement which management estimates will reduce the operation costs by $2,500 annually. A price of Uss 50.250 was negotiated. Destination, tags, administration, and other charges total USS 1,750. Per the fixed asset register the old BMW details included: US$ 49.500 Depreciation (thru 31 March) S$ 16.000 No debt exists on the old car. The dealership agreed to a trade in value of Uss 19.500. The new car is estimated to have a salvage value of USS 15,000. I. What is the gain loss on the old car? 2. What entry would you make to record the disposal? 3. How much cash is needed to complete the purchase? 4. What entry would you post for the acquisition? 5. What is the first month's depreciation, assuming a straight line method, a residual value of S15.000, and a five year life? 6. IF the company decided to pay USS 10,000 in cash and take an auto loan for the balance of the purchase, what would that entry be