A depreciation schedule for semi trucks of Sarasota Manufacturing Company was requested by your auditor soon after December 31, 2018, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4 year period 2015 to 2018, inclusive The following data were ascertained Balance of Trucks account, Jan 1, 2015 Truck No 1 purchased Jan 1, 2012, cost $21,420 Truck No 2 purchased July 1, 2012, cost 26,180 Truck No 3 purchased Jan 1, 2014, cost 35,700 Truck No 4 purchased July 1, 2014, cost 28,560 Balance, Jan 1, 2015 $111,860 The Accumulated Depreciation Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on that date of $35,938 (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, 2015 Transactions between January 1, 2015, and December 31, 2018, which were recorded in the ledger, are as follows July 1, 2015 Truck No 3 was traded for a larger one (No 5), the agreed purchase price of which was $47,600 Sarasota paid the automobile dealer $26,180 cash on the transaction The entry was a debit to Trucks and a credit to Cash, $26,180 The transaction has commercial substance Jan 1, 2016 Truck No 1 was sold for $4,165 cash entry debited Cash and credited Trucks, $4,165 July 1, 2017 A new truck (No 6) was acquired for $49,980 cash and was charged at that amount to the Trucks account (Assume truck No 2 was not retired ) July 1, 2017 Truck No 4 was damaged in a wreck to such an extent that it was sold as junk for $833 cash Sarasota received $2,975 from the insurance company The entry made by the bookkeeper was a debit to Cash, $3,808, and credits to Miscellaneous Income, $833, and Trucks, $2,975 Entries for straight line depreciation had been made at the close of each year as follows 2015, $24,990 2016, $26,775 2017, $29,810 2018, $36,176 For each of the 4 years, compute separately the increase or decrease in net income arising from the companys errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations

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A depreciation schedule for semi-trucks of Sarasota Manufacturing Company was requested by your auditor soon after December 31, 2018, showing the additions, retirements, depreciation, and

A depreciation schedule for semi-trucks of Sarasota Manufacturing Company was requested by your auditor soon after December 31, 2018, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2015 to 2018, inclusive. The following data were ascertained.

Balance of Trucks account, Jan. 1, 2015
Truck No. 1 purchased Jan. 1, 2012, cost		$21,420
Truck No. 2 purchased July 1, 2012, cost		26,180
Truck No. 3 purchased Jan. 1, 2014, cost		35,700
Truck No. 4 purchased July 1, 2014, cost		28,560
Balance, Jan. 1, 2015		$111,860

The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on that date of $35,938 (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, 2015. Transactions between January 1, 2015, and December 31, 2018, which were recorded in the ledger, are as follows.

July 1, 2015		Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $47,600. Sarasota. paid the automobile dealer $26,180 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $26,180. The transaction has commercial substance.
Jan. 1, 2016		Truck No. 1 was sold for $4,165 cash; entry debited Cash and credited Trucks, $4,165.
July 1, 2017		A new truck (No. 6) was acquired for $49,980 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
July 1, 2017		Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $833 cash. Sarasota received $2,975 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,808, and credits to Miscellaneous Income, $833, and Trucks, $2,975.

Entries for straight-line depreciation had been made at the close of each year as follows: 2015, $24,990; 2016, $26,775; 2017, $29,810; 2018, $36,176.

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