Exercise 10-03 Waterway Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2020. The terms of acquisition for each truck are described below. 1. 2. 3. 4. Truck #1 has a list price of $22,350 and is acquired for a cash payment of $20,711. Truck #2 has a list price of $23,840 and is acquired for a down payment of $2,980 cash and a zero-interest-bearing note with a face amount of $20,860. The note is due April 1, 2021. Waterway 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 $23,840. It is acquired in exchange for a computer system that Waterway carries in inventory. The computer system cost $17,880 and is normally sold by Waterway for $22,648. Waterway uses a perpetual inventory system. Truck #4 has a list price of $20,860. It is acquired in exchange for 990 shares of common stock in Waterway Corporation. The stock has a par value per share of $10 and a market price of $13 per share.