Katrina Company acquired a truck on January 1, 2019, for $140,000. The truck had an estimated useful life of five years with no salvage value. Katrina used straight-line depreciation for the truck. On January 1, 2020, Katrina revises the estimated useful life of the truck. Katrina made the accounting change in 2020 to reflect the extended useful life. Refer to Exhibit 22-3. If the revised estimated useful life of the truck is a total of seven years, and assuming an income tax rate of 35%, what is the amount of the prior-years effect that Katrina should report in its 2020 income statement as a result of changing the useful life of the truck? Question 18 options