Steve's Outdoor Company purchased a new delivery van on January 1 for $45,000 plus $3,800 in sales tax. The company paid $12,800 cash on the van (including the sales tax), with the $36,000 balance on credit at 8 percent interest due in nine months (on September 30). On January 2, the company paid cash of $700 to have the company name and logo painted on the van. On September 30, the company paid the balance due on the van plus the interest. On December 31 (the end of the accounting period), Steve's Outdoor recorded depreciation on the van using the straight-line method with an estimated useful life of 5 years and an estimated residual value of $4,500.

3. Compute the depreciation expense to be reported for Year 1.

Required 1. Indicate the eTects (accounts, amounts, andr-of each transaction on the accounting equaticn. Use the following schedCule: (If the transaction does not impact the accounting equation choose "No effect" in the first column under "Assets") Date Assets Stockholders' Equity 48,000 12,800 (700 rt term note payable 36,000 Equipmant Van) Cash January 1 anuary 2 Cash September Cash Short terrm note paryable