Expenditures After Acquisition and Depreciation Eastern National Bank installed a wireless encryption device in January 2019. The device cost $120,000. At the time the device was installed, Eastern estimated that it would have an expected life of 8 years and a residual value of $10,000. By 2022, the bank's business had expanded and modifications to the device were necessary. At the beginning of 2023 , Eastern spent $45,000 on modifications for the device. Eastern estimates that the new expected life of the device (from January 2023) is 6 years and the new residual value is $4,940. Eastern uses the straight-line method of depreciation. Had Eastern not modified the device, it estimates that processing delays would have caused the bank to lose at least $100,000 of business per year. Required: 1. Compute the accumulated depreciation for the device at the time the modifications were made ( 4 years after acquisition). $ 2. What is the book value of the device before and after the modification? 3. What will be annual straight-line depreciation expense for the device after the modification