Tower Company owned a service truck that was purchased at the beginning of Year 1 for $44,000. It had an estimated life of three years and an estimated salvage value of $5,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, Year 3, is shown on the first line of the horizontal statements model. In Year 3, Tower Company spent the following amounts on the truck: Jan. 4 Overhauled the engine for $7,200. The estimated life was extended one additional year, and the salvage value was revised to $4,000. July 6 Obtained oil change and transmission service, $370. Aug. 7 Replaced the fan belt and battery, $470. Dec. 31 Purchased gasoline for the year, $8,700. 31 Recognized Year 3 depreciation expense.