EXERCISE 2: Straight-Line Depreciation: Complete the following problem. Lucianno's Pizza used cash to purchase a car on January 1" to be used in delivering pizzas. The car cost $14,000. It will be used for 5 years, after which its salvage value is estimated to be $2,000. In those 5 years, Lucianno's estimates that the car will be driven 80,000 miles. Calculate the depreciation to be recorded each year using the Straight-Line method and a) Record the purchase. b) Record the first and second year depreciation entries using the t-accounts below. Cost Salvage 5 Useful Life years per year Auto Accumulated Depreciation Cash Depreciation Expense After recording the first two years of depreciation using the Straight-Line method, what is the Net Book Value of the car? Original Cost $14,000 Accumulated Depreciation $ Net Book Value: = $ Page 1