The Merchant of Tennis, Inc., had $10,000 of inventory at the beginning of the period. During the period it purchased $70,000. Based on a physical count of inventory at the end of the accounting period, it had $7,000 in inventory. Based on this information, calculate Cost of Goods Sold for the period. Treating a capital expenditure as an immediate expense overstates assets and overstates shareholders' equity understates expenses and overstates shareholders' equity overstates expenses and understates net income understates expenses and understates assets Lawn \& Order, Inc., purchased a truck on January 1, Year 1, at a cost of $111,000. The truck has an estimated useful life of 5 years or 114,000 miles. The estimated salvage value is $16,000. In Year 1 , the truck was driven 17,000 miles. In Year 2 , the truck was driven 28,000 miles. Accumulated Depreciation on the balance sheet using straight-line depreciation at December 31, Year 2, after two years of use, is (rounded to the nearest dollar) Round to the nearest dollar