HUND.8:37 PM Question 4 Correct Accounting for Plant Assets Ethan Corporation had the following transactions related to its delivery truck Year 1 jan. 5 Feb. 20 June 9 Aug, 2 Dec. 31 Purchased for $28,000 cash a new truck with an estimated useful life of four years and a salvage value of $4,000 Installed a new set of side-view mirrors at a cost of $80 cash Paid $325 for an engine tune-up, wheel balancing, and a periodic chassis lubrication Paid a 1410 repake bill for the uninsured portion of damages to the truck caused by Erhan's own driver Recorded depreciation on the truck for the year Year 2 May 1 Dec. 31 Mark 20.00 out of 20.00 stalled a set of parts bins in the truck at a cost of $950 cash. This expenditure was not expected to increase the salvage value of the truck Recorded depreciation on the truck for the year Year 3 Dec. 31 Recorded depreciation on the truck for the year Ethans's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month