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21. Fionas Italian Market purchased a delivery truck for $25,000 at the beginning of Year 1. The truck has an estimated life of five years
21. Fionas Italian Market purchased a delivery truck for $25,000 at the beginning of Year 1. The truck has an estimated life of five years and an estimated residual value of $5,000. The company plans to use the straight-line depreciation method. At the beginning of Year 2, the company spent $4,000 to replace the trucks transmission. This resulted in a two-year extension of useful life, but no change in residual value. Refer to Fionas Italian Market. What is the amount of depreciation expense for Year 2? a. $2,667 b. $3,333 c. $4,167 d. $4,800
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