Jokoy Company completed the following transactions and events involving its delivery trucks. Depreciation for the year is recorded at the end of year on Dec 31. Year 1 January 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. December 31 Recorded annual straight-line depreciation on the truck. Year 2 December 31 The trucks estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck. Assume change occured at beginning at Year 2 (Jan 1) Year 3 December 31 Recorded annual straight-line depreciation on the truck. December 31 Sold the truck for $5,500 cash.

Required: 1-a. Calculate depreciation for Year 2 with changes in useful life and salvage value noted above

1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.

1-c. Prepare journal entries to record these transactions and events.