Vaughn Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2017. The terms of acquisition for each truck are described below.

1. Truck #1 has a list price of $18,750 and is acquired for a cash payment of $17,375.

2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,500 cash and a zero-interest-bearing note with a face amount of $17,500. The note is due April 1, 2018. Vaughn would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.

3. Truck #3 has a list price of $20,000. It is acquired in exchange for a computer system that Vaughn carries in inventory. The computer system cost $15,000 and is normally sold by Vaughn for $19,000. Vaughn uses a perpetual inventory system.

4. Truck #4 has a list price of $17,500. It is acquired in exchange for 940 shares of common stock in Vaughn Corporation. The stock has a par value per share of $10 and a market price of $13 per share.