A depreciation schedule for semi-trucks of ISIDRO MANUFACTURING COMPANY was requested by your auditor soon after December 31, 2017, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2014 to 2017, inclusive.

The following data were ascertained.

Balance of Trucks account, Jan. 1, 2014

Truck No. 1 purchased Jan. 1, 2011, costP180,000

Truck No. 2 purchased July 1, 2011, cost220,000

Truck No. 3 purchased Jan. 1, 2013, cost300,000

Truck No. 4 purchased July 1, 2013, cost240,000

Balance, Jan. 1, 2014P940,000

The Accumulated Depreciation?Trucks account previously adjusted to January 1, 2014, and entered in the ledger, had a balance on that date of P302,000 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2014.

Transactions between January 1, 2014, and December 31, 2017, which were recorded in the ledger, are as follows.

• July 1, 2014Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was P400,000. Isidro Mfg. Co. paid the automobile dealer P220,000 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, P220,000. The transaction has commercial substance.
• Jan. 1, 2015Truck No. 1 was sold for P35,000 cash; entry debited Cash and credited Trucks, P35,000.
• July 1, 2016A new truck (No. 6) was acquired for P420,000 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
• July 1, 2016Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for P7,000 cash. Isidro Mfg. Co. received P25,000 from the insurance company. The entry made by the bookkeeper was a debit to Cash, P32,000, and credits to Miscellaneous Income, P7,000, and Trucks, P25,000.

Entries for depreciation had been made at the close of each year as follows: 2014, P210,000; 2015, P225,000; 2016, P250,500; 2017, P304,000.