Yoshi Company completed the following transactions and events involving its delivery trucks.

Year 1

Jan.1Paid $25,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 salvage value. Delivery truck costs are recorded in the Trucks account.Dec.31Recorded annual straight-line depreciation on the truck.

Year 2

Dec.31The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck.

Year 3

Dec.31Recorded annual straight-line depreciation on the truck.Dec.31Sold the truck for $5,600 cash.

Required:

1-a.Calculate depreciation for Year 2.

1-b.Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.

1-c.Prepare journal entries to record these transactions and events.