P9-4B. Journal Entries for Plant Assets Ediza Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. Dec. Year 2 July Sept. Dec. Year 3 Sept. 1 Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years and a $6,850 salvage value. 2 Paid $750 for painting the company name and logo on the truck. 31 Recorded depreciation on the truck for the year. 1 Installed air conditioning in the truck at a cost of $1,808 cash. Although the truck's estimated useful life was unaffected, its estimated salvage value was increased by $400. 7 Paid $600 for truck tune-up and safety inspection. 31 Recorded depreciation on the truck for the year. 3 Installed a set of front and rear bumper guards at a cost of $125 cash. Dec. 31 Recorded depreciation on the truck for the year. Year 4 Dec. 31 Recorded depreciation on the truck for the year. Ediza's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less.