Sandhill company purchased a delivery truck for $48,000 on july 1, 2022. the truck has an expected salvage value of $4,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. actual miles driven were 15,000 in 2022 and 12,000 in 2023. sandhill uses the straight-line method of depreciation. compute depreciation expense for 2022 and 2023.

Teatro restoration, inc., begins renovating an old theater for urban edge productions, but after three months teatro demands an extra $250,000. urban edge agrees to pay. refer to fact pattern 13–4. if teatro says it is asking for the extra $250,000 because it has encountered extraordinary unforeseen difficulties that will add considerable cost to the project, the agreement is