Show me the steps to solve On January $1,$ Year $1,$ Marino Moving Company paid $$55,000$ cash to purchase a truck. The truck was expected to have a four$-$year useful life and an $$10,800$ salvage value. Marino uses

the straight$-$line method. On January $1,$ Year $3,$ Marino's accounting records contained the following balances:

Truck $$55,000$

Accumulated Depreciation $$22,100$

Also, on January $1,$ Year $3$ the company paid $$17,000$ to replace an engine that would extend the useful life of the truck from a total of four years to a total of seven years. Which of the

following shows how the engine replacement will affect the account balances after the engine replacement on January $1,$ Year $3?$

Multiple Choice

Truck $$72,000,$ Accumulated Depreciation $$22,100$

Truck $$55,000,$ Accumulated Depreciation $$22,100$

Truck $$55,000,$ Accumulated Depreciation $$5,100$

Truck $$72,000,$ Accumulated Depreciation $$5,100$