The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. Year 1 Acquired $72,000 cash from the issue of common stock. Purchased a used wrecker for $34,000 cash. It has an estimated useful life of three years and a $3,000 salvage value. Paid sales tax on the wrecker of $5,000. Collected $58,100 in towing fees. Paid $12,200 for gasoline and oil. Recorded straight-line depreciation on the wrecker for Year 1. Closed the revenue and expense accounts to Retained Earnings at the end of Year 1. Year 2 Paid for a tune-up for the wreckers engine, $1,100. Bought four new tires, $1,450. Collected $64,000 in towing fees. Paid $18,200 for gasoline and oil. Recorded straight-line depreciation for Year 2. Closed the revenue and expense accounts to Retained Earnings at the end of Year 2. Year 3 Paid to overhaul the wreckers engine, $5,000, which extended the life of the wrecker to a total of four years. The salvage value did not change. Paid for gasoline and oil, $19,300. Collected $67,000 in towing fees. Recorded straight-line depreciation for Year 3. Closed the revenue and expense accounts at the end of Year 3