SheridanPants Company acquires a delivery truck on April 6, 2021, at a cost of $40,000. The truck is expected to have a residual value of $6,400at the end of its4-year life.Sheridanuses the nearest month method to pro-rate depreciation expense.

Calculate annual depreciation expense for the first and second years using straight-line depreciation, assumingSheridanhas a calendar year end.

Depreciation - 2021$Depreciation - 2022$