You have been retained to assist in the purchase of a taco truck. The owner did not

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Question:

You have been retained to assist in the purchase of a taco truck.
The owner did not keep very good accounts, but you hired an appraiser who determined:
The truck itself is worth $7,500 and probably has about 3 more years of life in it. There is no salvage value to the truck.
The kitchen equipment inside the truck is relatively new and worth $12,000 at present.
This equipment is heavy-duty and should last another ten years before being scrapped, i.e. no salvage value.
The owner has a long-term lease with 3 remaining years that you will assume. The lease has no independent value.
The lease allows the truck to be parked and provides a small garage space in which you have a refrigerator
and you keep other items of inventory such as food preparation materials and paper goods.
The refrigerator is worth $10,000 and has seven years of life. It will probably be worth $2,000 after seven years.
The inventory consists of $4,500 worth of paper goods--napkins, plates, bags, as well as plastic utensils.
The inventory also consists of $1,000 worth of perishable items that are replenished every other day by food service.
The owner has a point-of-sale cash system that is worth $750 and will probably be replaced by the end of the year.
The office and truck have some furniture and shelving but it has no real value--you will keep it as part of the sale.
You will pay a 4.712% excise tax on the amount you are paying for the truck.
Assume that there is $10,000 of goodwill inherent in the price you agree to pay.
Also, you are going to become responsible for a loan that the prior owner obtained to pay for the kitchen equipment.
As of the date of the sale, the interest on the loan will be paid current and the principal balance of the loan is $3,850.
The loan has a 12% rate of interest. Your food supplier is owed $3,500 but the owner is going to pay that with some of the purchase money.
You will retain all the employees who have been paid in full as of the date of sale, there are no taxes or liabilities other than the bank loan.
The sale closes (meaning "is completed") on June 1, 2022. The owner has $500 in cash from sales on June 1, 2022, that an employee deposited into the business account on the date of sale. The business account is now your account.

Required
a. What did you pay for the truck?
b. Prepare a Balance Sheet as of the date of sale.

Now consider that it is the end of 2022:
You owe your food supplier $2,800.
You have paid December's rent. (Monthly rent is $4,000)
You have paid your food supplier $49,200 since purchasing the truck.
You have $750 worth of food in storage. You have about $300 worth of paper & plastic goods, but you do not
owe anything on your credit with the supplier of your materials.
You have two employees whom you pay $2,500 per month. FICA tax is 7.65% and unemployment tax is an annual
2% of your gross payroll (i.e. payroll expense). As of the end of the year all of your income tax (state and federal)
withholding has been properly collected and paid to the government, as has the excise tax you collect.) You have not
paid anything to FICA taxes yet, although you did withhold them.
You had total cash sales of $119,000 for the year 2022 and passed excise to your customers.
You did not accept credit cards or checks.
Your bank charges $50 per month. You paid about $3,000 in gas. You have a monthly electric bill of $625.
Your insurance policy is annual and you paid $3,600 for coverage starting on the date you closed the sale.
You have paid $6,875 to Costco for various supplies used to run the business.
Your landlord covers costs of garbage and maintaining the area where you park, it is part of the rent.
Your annual business fees and vehicle registration (it's a truck, right?) were $1,390.
You have a laundry that picks up linens and employee clothing cleans it and delivers it back. You pay $400 per month.
You make loan payments to the bank in the amount of interest due plus $200 towards principal each month on the first
You started the loan payments the month after you purchased the truck.
And, of course, you pay the CPA $2,500 a year for accounting services such as excise tax, payroll tax, payroll, etc.