Shabbona Corporation operates a retail computer store. To improve delivery servi

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Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2012. The terms of acquisition for each truck are described below. Truck #1 has a list price of $44,580 and is acquired for a cash payment of $41,311. Truck #2 has a list price of $59,440 and is acquired for a down payment of $5,944 cash and a zero-interest-bearing note with a face amount of $53,496. The note is due April 1, 2013. Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8%. Truck #3 has a list price of $47,552. It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system cost $35,664 and is normally sold by Shabbona for $45,174. Shabbona uses a perpetual inventory system. Truck #4 has a list price of $41,608. It is acquired in exchange for 1,170 shares of common stock in Shabbona Corporation. The stock has a par value per share of $10 and a market price of $13 per-share.

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