In 20X2, the new CEO of Watsontown Electric Supply became concerned about the company's apparently deteriorating financial position. Wishing to make certain that the grim monthly reports he was receiving from the company's bookkeeper were accurate, the CEO engaged a CPA firm to examine the company's financial records. The CPA firm discovered the following facts during the course of the engagement, which was completed prior to any adjusting or closing entries being prepared for 20X2. A new digital imaging system was acquired on January 5, 20X1, at a cost of $5,000. Although this asset was expected to be in use for the next four years, the purchase was inadvertently charged to office expense. Per the company's accounting manual, office equipment of this type should be depreciated using the straight-line method with no salvage value assumed. A used truck, purchased on November 18, 20X2, was recorded with this entry: To record truck expenditure: Vehicle Expense $ 18,000 Cash $ 18,000 Management plans to use this truck for three years and then trade it in on a new one. Salvage is estimated at $3,000. Watsontown has always used straight-line depreciation for fixed assets, recording a half year of depreciation in the year