depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2016, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2013 to 2016, inclusive. The following data were ascertained (amounts in thousands).

The Accumulated Depreciation—Trucks account previously adjusted to January 1, 2013, and entered in the ledger, had a balance on that date of ¥30,200 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no residual value). No charges had been made against the account before January 1, 2013.
Transactions between January 1, 2013, and December 31, 2016, which were recorded in the ledger, are as follows.

Instructions

(a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company’s errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations.

(b) Prepare one compound journal entry as of December 31, 2016, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2016.

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Balance of Trucks account, Jan. 1, 2013 Truck No. 1 purchased Jan. 1, 2010, cost Truck No. 2 purchased July 1, 2010, cost Truck No. 3 purchased Jan. 1, 2012, cost Truck No. 4 purchased July 1, 2012, cost Balance, Jan. 1, 2013 18,000 22,000 30,000 24,000 94,000