Transactions between January $1,2020,$ and December $31,2023,$ and their records $in$ the ledger were $as$ follows:

July $1,2020$

Truckno. $3$ was traded for a larger one $(no\mathrm{.}5).$ The agreed purchase price $(fair$ value$)$ was $$32,000.$ Monty paid the automobile dealer $$15\mathrm{.}000$ cash $on$ the transaction. The entry was a debit $to$ Vehicles and a credit $to$ Cash, $$15\mathrm{.}000.$

Jan. $1,2021$

Truckno. $1$ was sold for $$3,200$ cash. The entry was a debit $to$ Cash and a credit $to$ Vehicles, $$3,200.$

July $1,2022$

A new truck $(no.6)$ was acquired for $$38,000$ cash and was charged $at$ that amount $to$ the Vehicles account. $(Assume$ truck $no.2$ was not retired.$)$

July $1,2022$

Truck $no.4$ was $so$ badly damaged $inan$ accident that $it$ was sold $as$ scrap for $$800$ cash. Monty received $$2,000$ from the insurance company. The entry made $by$ the bookkeeper was a debit $to$ Cash, $$2,800$; and credits $to$ Gain $on$ Disposal $of$ Vehicles, $$800$; and Vehicles, $$2,000.$

Entries for depreciation were made $at$ the close $of$ each year $as$ follows: $2020,$ $$20,000$;$2021,$$$20,700$;$2022,$$$23,900$; and $2023,$$$27,300.$

$(a)$

For each $of$ the four years, calculate separately the increase $or$ decrease $in$ net income that $is$ due $to$ the company's errors $in$ determining $or$ entering depreciation $orin$ recording transactions affecting the trucks. Ignore income tax considerations.

Transactions between January $1,2020,$ and December $31,2023,$ and their records $in$ the ledger were $as$ follows:

July $1,2020$

Truckno. $3$ was traded for a larger one $(no\mathrm{.}5).$ The agreed purchase price $(fair$ value$)$ was $$32,000.$ Monty paid the automobile dealer $$15\mathrm{.}000$ cash $on$ the transaction. The entry was a debit $to$ Vehicles and a credit $to$ Cash, $$15\mathrm{.}000.$

Jan. $1,2021$

Truckno. $1$ was sold for $$3,200$ cash. The entry was a debit $to$ Cash and a credit $to$ Vehicles, $$3,200.$

July $1,2022$

A new truck $(no.6)$ was acquired for $$38,000$ cash and was charged $at$ that amount $to$ the Vehicles account. $(Assume$ truck $no.2$ was not retired.$)$

July $1,2022$

Truck $no.4$ was $so$ badly damaged $inan$ accident that $it$ was sold $as$ scrap for $$800$ cash. Monty received $$2,000$ from the insurance company. The entry made $by$ the bookkeeper was a debit $to$ Cash, $$2,800$; and credits $to$ Gain $on$ Disposal $of$ Vehicles, $$800$; and Vehicles, $$2,000.$

Entries for depreciation were made $at$ the close $of$ each year $as$ follows: $2020,$ $$20,000$;$2021,$$$20,700$;$2022,$$$23,900$; and $2023,$$$27,300.$

$(a)$

For each $of$ the four years, calculate separately the increase $or$ decrease $in$ net income that $is$ due $to$ the company's errors $in$ determining $or$ entering depreciation $orin$ recording transactions affecting the trucks. Ignore income tax considerations. obtained:

Transactions between January $1,2020,$ and December $31,2023,$ and their records $in$ the ledger were $as$ follows:

Jan. $1,2021$ Truck $no.1$ was sold for $$3,200$ cash. The entry was a debit $to$ Cash and a credit $to$ Vehicles, $$3,200.$

July $1,2022$ A new truck $(no.6)$ was acquired for $$38,000$ cash and was charged $at$ that amount $to$ the Vehicles account. $(Assume$ truck $no.2$ was not retired.$)$