Sheridan Enterprises purchased a delivery truck on January 1, 2025, at a cost of $28,000. The truck has a useful life of 7 years with an estimated salvage value of $5,460. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2025 and 2026 the company has revenues of $206,000 and operating expenses (excluding depreciation) of $133,900.