(Solved by Humans)-Problem 8-6 (Algorithmic) Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The

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Problem 8-6 (Algorithmic) Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Pete's Painting Company during 2012: On January 1, Pete bought a used truck for $14,000. He added a tool chest and side racks for ladders for $4,400. The truck is expected to last four years and then be sold for $1,200. Pete uses straight-line depreciation. On January 1, he purchased several items at an auction for $3,060. These items had fair market values as follows: 10 cases of paint trays and roller covers $200 Storage cabinets 900 Ladders and scaffolding 4,000 Pete will use all of the paint trays and roller covers this year. The storage cabinets are expected to last nine years; the ladders and scaffolding, four years. On February 1, Pete paid the city $1,944 for a three-year license to operate the business. On September 1, Pete sold an old truck for $4,280 that had cost $11,060 when it was purchased on September 1, 2007. It was expected to last eight years and have a salvage value of $500. Required: 1. For each situation, determine the value assigned to the asset when it is purchased [or for (d), the book value when sold]. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset Relevant Value a. Recorded cost of truck $ b. Part 1 - recorded amount of supplies $ b. Part 2 - recorded cost of office furniture $ b. Part 3 - recorded cost of equipment $ c. Recorded cost of prepaid license $ d. Book value of truck at time of sale $ 2. Determine the amount of depreciation or other expense to be recorded for each asset for 2012. Enter all amounts as positive numbers except if there is a loss in part d. Do not round intermediate calculations. If required, round your final answers to the nearest dollar. Asset 2012 Expense Amount a. Truck depreciation $ b. Part 1 - supplies expense $ b. Part 2 - office furniture depreciation $ b. Part 3 - equipment depreciation $ c. License amortization $ d. Part 1 - old truck depreciation $ d. Part 2 - gain/loss on the sale (use the minus sign to indicate a loss) $ 3. How would these assets appear on the balance sheet as of December 31, 2012? Pete's Painting Company Balance Sheet (Partial) December 31, 2012 Current assets:    $   Property, plant, and equipment:    $               $         Property, plant, and equipment, net $