On January 1, 2010 Madison Co. purchased a vehicle for $55,000 cash. The useful life is expected to be 5 years with an estimated salvage value of $5000. At the end of year 3, Madison decided to increase the useful life to 7 years (in total) and reduce the salvage value to $3000.

a. Journalize the purchase

b. Journalize the first years depreciation

c. What is the annual depreciation beginning in year 4?