*Problem 11-4 A depreciation schedule for semi-trucks of Sunland 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 Truck No. 2 purchased July 1, 2012, cost Truck No. 3 purchased Jan. 1, 2014, cost Truck No. 4 purchased July 1, 2014, cost Balance, Jan. 1, 2015 $19,080 23,320 31,800 25,440 $99,640 The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on that date of $32,012 (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 $42,400. Sunland. paid the automobile dealer $23,320 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $23,320. The transaction has commercial substance. Jan. 1, 2016 July 1, 2017 Truck No. 1 was sold for $3,710 cash; entry debited Cash and credited Trucks, $3,710 A new truck (No. 6) was acquired for $44,520 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 $742 cash. Sunland received $2,650 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,392, and credits to Miscellaneous Income, $742, and Trucks, $2,650 Entries for straight-line depreciation had been made at the close of each year as follows: 2015, $22,260; 2016, $23,850; 2017, $26,553; 2018, $32,224