Instructions The following transactions and adjusting entries were completed by Legacy Furniture Co. during a three-year period. All are related to the use of delivery equipment. The double-declining-balance method of depreciation is used. Year 1 Jan. 4 Purchased a used delivery truck for $28,000, paying cash. Nov. 2 Paid garage $675 for miscellaneous repairs to the truck. Dec. 31 Year 2 Jan. 6 Apr. 1 June 11 Dec. 31 Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $5,000 for the truck. Purchased a new truck for $48,000, paying cash. Sold the used truck purchased on January 4 of Year 1 for $15,000. (Record depreciation to date in Year 2 for the truck.) Paid garage $450 for miscellaneous repairs to the truck. Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated life of five years. Year 3 July 1 Oct. 2 Dec. 31 Purchased a new truck for $54,000, paying cash. Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the truck.) Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $12,000 and an estimated useful life of eight years.