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Lafferty purchased a truck on January 1, 2022, at a cost of $45,000. Straight-line depreciation for 2022 and 2023 was based on an estimated eight-year
Lafferty purchased a truck on January 1, 2022, at a cost of $45,000. Straight-line depreciation for 2022 and 2023 was based on an estimated eight-year life and $3,000 estimated residual value. At the beginning of 2024 , Lafferty revised its estimate and now believes the truck will have a total service life of only six years, and that the residual value will be only $2,000. Required: Compute depreciation for 2024 and 2025. Show and label all computations
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