3-4. Accounting for Property, Plant and Equipment Basin Corporation had the following transac. tions related to its delivery truck: Year 1 Jan. 5 Purchased for $14,300 cash a new truck with an estimated useful life of four years and a salvage value of $2,300. Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. June 9 Paid $285 for an engine tune-up, wheel balancing, and a periodic chassis lubrication. Aug. 2 Paid a $250 repair bill for the uninsured portion of damages to the truck caused by Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 May 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. Dec. 31 Recorded depreciation on the truck for the year. Year 3 Dec. 31 Recorded depreciation on the truck for the year. Basin's depreciation policies include (1) using straight-line depreciation, (2) recording deprecia. tion to the nearest whole month, and (3) expensing all truck expenditures of $75 or less. REQUIRED Based on these transactions: a. Calculate the depreciation expense for each of the three years. b. Calculate the book value of the delivery truck at the end of year 3