1. On January 1, 2010 Madison Co. purchased a vehicle for $68,000 cash. The useful life is expected to be 8 years with an estimated salvage value of $4000. At the end of year 6, Madison decided to increase the useful life to 10 years (in total) and reduce the salvage value to $2000 a. Journalize the purchase b. Journalize year ones depreciation c. Calculate the new annual depreciation after year 6 Date Accounts Ref. Debit Credit Jan.1 Vehicle 68000 Cash 68000 Depreciation Accumulated Depreciation- Vehicle