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A depreciation schedule for semi-trucks of Blue Manufacturing Company was requested by your auditor soon after December 31, 2026, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2023 to 2026, inclusive. The following data were ascertained.

Balance of Trucks account, Jan. 1, 2023
Truck No. 1 purchased Jan. 1, 2020, cost		$21,960
Truck No. 2 purchased July 1, 2020, cost		26,840
Truck No. 3 purchased Jan. 1, 2022, cost		36,600
Truck No. 4 purchased July 1, 2022, cost		29,280
Balance, Jan. 1, 2023		$114,680

The Accumulated DepreciationTrucks account previously adjusted to January 1, 2023, and entered in the ledger, had a balance on that date of $36,844 (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, 2023. Transactions between January 1, 2023, and December 31, 2026, which were recorded in the ledger, are as follows.

July 1, 2023		Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $48,800. Blue paid the automobile dealer $26,840 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $26,840. The transaction has commercial substance.
Jan. 1, 2024		Truck No. 1 was sold for $4,270 cash; entry debited Cash and credited Trucks, $4,270.
July 1, 2025		A new truck (No. 6) was acquired for $51,240 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
July 1, 2025		Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $854 cash. Blue received $3,050 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,904, and credits to Miscellaneous Income, $854, and Trucks, $3,050.

Entries for straight-line depreciation had been made at the close of each year as follows: 2023, $25,620; 2024, $27,450; 2025, $30,561; and 2026, $37,088.

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. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

				Per Company Books						As Adjusted
				Trucks dr. (cr.)		Acc. Dep. Trucks dr. (cr.)		Retained Earnings dr. (cr.)		Trucks dr. (cr.)		Acc. Dep., Trucks dr, (cr.)		Retained Earnings dr, (cr.)		Net Income Overstated (Understated)
1/1/23		Balance		$		$		$		$		$		$		$
7/1/23		Purchase Truck #5
		Trade Truck #3
12/31/23		Depreciation
12/31/23		Balances
1/1/24		Sale of Truck #1
12/31/24		Depreciation
12/31/24		Balances
7/1/25		Purchase of Truck #6
7/1/25		Disposal of Truck #4
12/31/25		Depreciation
12/31/25		Balances
12/31/26		Depreciation
12/31/26		Balance		$		$		$		$		$		$		$

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