Godwin Co. owns three delivery trucks. Details for each truck at the end of the most recent year follow:

• At the beginning of the year, a hydraulic lift is added to Truck 1 at a cost of $4,500. The addition of the hydraulic lift will allow the company to deliver much larger objects than could previously be delivered.

• At the beginning of the year, the engine of Truck 2 is overhauled at a cost of $5,000. The engine overhaul will extend the truck’s useful life by three years. Write a short memo to Godwin’s chief financial officer explaining the financial statement effects of the expenditures associated with Trucks 1 and 2.

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Expected Useful Life Accumulated Depreciation $11,250 Age Initial Cost Truck 1 3 6. $22,500 26,250 28,500 Truck 2 5 6. 21,875 9,500 Truck 3 2