1. On July 8, 2017, Lucky's, Inc. purchased a service vehicle for $53,000. The estimated useful life was estimated at 5 years; $20,000 residual value. The company uses the straight-line method of depreciation; full month convention. On January 21, 2019, Lucky's had storage and shelving units permanently installed in the vehicle, increasing the type of jobs that Lucky's personnel could handle at remote job sites. The cost of the upgrade was $15,015. The upgrade was not expected to extend the life of the vehicle. In December 2020, the service manager revised the estimate of the life and residual value of the vehicle to 7 years; $10,000, respectively. How much depreciation expense should Lucky's recognize on the vehicle in 2021? O A) $7,524 B) $3,762 C) $10,381 O D) $8,260 1. Which of the following statements about changes in depreciation methods is(are) correct? O A) A change in depreciation method is treated as a change in accounting principle and is accounted for prospectively. B) A company must disclose the reason for changes in depreciation methods in the notes to the financial statements, if the effect of the change in depreciation method is material. C) Although changes in depreciation methods are accounted for prospectively, disclosure of the balance in accumulated depreciation prior to the change in method is required. D) A and E) B and C