On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. Marino planned to drive the truck for 100,000 miles and then to sell it. The truck was expected to have an $8,000 salvage value. The truck was actually driven 40.000 miles during Year 1. 20,000 miles during Year 2, 35,000 miles during Year 3 and 10,000 miles during Year 4. If Marino uses the units-of-production method, which of the following shows how the adjusting entry to recognize depreciation expense at the end of Year 3 will affect the Company's financial statements? Q1 Balance sheet Assets Income Statenent Cash Flow Statement CashTruckAcc. Dep.Liab.Equity RevExp.Net Inc NA 14,eee -14,80e 38,ee0 NA | =1 NA + | 14,080 | NA 1.114,eeel=1 (14,080) | (14,808) OA NA (14,ee) NA NA (38,00) Q2 On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four useful life and an $8,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marino's accounting records contained the balances shown in the following financial statements Balance sheet Assets Income Statement Cash Flow Statement NA cc, Dep. |# | Liab. Equity Rev Exp. | = | Net Inc. 25,8e + -20,9e9 NA -NA NA Also, on January 1, Year 3 the company paid $10000 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Which of the following shows how the engine replacement will affect the Company's financial statements on January 1, Year 3? Balance sheet Assets Income State ent Cash Flow Statenent (1e,e00) IA CashTruckAcc. Dep.Liab.EquityRev.Exp. Net Inc. NA NA NA-NA B. (18,88)+ NA NA+ (1e,808) NA + NA NA NA NA (1e,800) IA