Question 3: a) On January 2, S&G Wholesale Grocery acquires a new delivery truck. The truck cost $17,000, has an estimated residual value of $2,000, and an estimated useful life of five years. Compute annual depreciation using the straight-line method. b) Assume that a machine costing $10,000 had accumulated depreciation of $8,000 and book value of $2,000 (10,000 - $8,000) at the time it was sold for $3,000 cash. Determine the gain or loss on sale of this machine and record the transaction in the format of general journal Assume that a patent is purchased from the inventor at a cost of $100,000 after five years of the legal life have expired. The remaining legal life is 15 years, but the estimated useful life is only 8 years. Calculate the annual amortization expense (use straight-line method) and post the entry to record the annual amortization expense. d) Rainbow Minerals pays $48 million to acquire the Red Valley Mine, which is believed to contain 5 million tons of coal. The residual value of the mine after all of the coal is removed is estimated to be $8 million. The depletion that will occur over the life of the mine is the original cost minus the residual value, or $40 million. This depletion will occur at the rate of $8 per ton ($40 million 5 million tons) as the coal is removed from the mine. If 2 million tons are mined during the first year of operations, calculate the depletion amount and post the entry to record the depletion of the mine.