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. Thedouble-declining-balance methodofdepreciationis used.

Year 1Jan. 4Purchased a used delivery truck for $28,000, paying cash.Nov. 2Paid garage $675 for miscellaneous repairs to the truck.Dec. 31Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with aresidual valueof $5,000 for the truck.Year 2Jan. 6Purchased a new truck for $48,000, paying cash.Apr. 1Sold the used truck purchased on Jan. 4 of Year 1 for $15,000. (Record depreciation to date in Year 2 for the truck.)June 11Paid garage $450 for miscellaneous repairs to the truck.Dec. 31Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated life of five years.Year 3July 1Purchased a new truck for $54,000, paying cash.Oct. 2Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the truck.)Dec. 31Recorded 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.