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Question: Yoshi Company completed the following transactions and events involving its delivery trucks.
2014
Jan. 1
Paid $22,015 cash plus $1,935 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec. 31 Recorded annual straight-line depreciation on the truck.
2015
Dec. 31
Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck.
2016
Recorded annual straight-line depreciation on the truck.
Dec. 31 Sold the truck for $5,500 cash.
Required: Calculate depreciation for year 2015.
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Refer back to the original data. How many units would have to be sold next year to earn a target profit of $30,200 (ignoring income taxes)?
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