Tanger Interiors purchased a delivery truck in cash on January 1,2018 with the following information:

Question 4: (1.5 marks) Tanger Interiors purchased a delivery truck in cash on January 1, 2018 with the following information: (1) Purchase price: $38,000. (2) Attorney's fee: $2,000 (3) Two-year insurance policy: $600 (4) Sales tax: $5,000 The truck has its expected useful life of 10 years with expected miles to be driven of 110,000. The truck have the residual value of $6,000 after 10 years of usage. Actual miles driven were 10,000 in 2018;13,000 in 2019 and 14,000 in 2020 0.3 Required: 1. Calculate cost of the delivery truck. (0.1 marks) 2. Prepare journal entry to record all these costs on January 1, 2018 (0.2 marks) 3. Compute depreciation expense for 2018, 2019,2020 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method (0.6 marks) 4. Suppose profit before depreciation of Tanger Interiors was $50,000 for 2018, calculate profit after depreciation for each depreciation method. What are your conclusion about relationships between depreciation method and net income? (0.3 marks) 5. Record the journal entry when the truck is sold on 31 December 2020 at price $26,000 (for 3 deprecation methods (0.3 marks)