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On April 1, Year 1, Marshall Company purchased a used delivery truck paying $23,000 cash...

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Accounting

On April 1, Year 1, Marshall Company purchased a used delivery truck paying $23,000 cash and signing a Note Payable for the $14,000 for the remainder of the purchase cost. The Note Payable's interest rate was 6% and has a due date of April 1, Year 2. On the note's due date, Marshall must pay off the principal and the interest.

On April 1, Year 4, after using the truck for three years, the firm spent $4,500 on the truck. 40% of this amount was to repaint the truck to make its appearance like when purchased and the remainder was to install some navigation system to enable more efficient deliveries.

Marshall's fiscal year ends on December 31.

Q: On April 2, Year 4, what amount would appear in the PPE account as the cost basis of this truck?

Q: How much Interest Expense would appear in Marshall's income statement for the year ended December 31, Year 1?

Q: How much Interest Expense would appear in Marshall's income state for the year ended December 31, Year 2?

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