Question
4 Part question. Each part needs to be completed for 4 companies... Calculate the net income for 2016 for companies a,b, and c Calculate the
4 Part question. Each part needs to be completed for 4 companies...
Three different companies each purchased trucks on January 1, 2016, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 80,000 miles in 2016, 55,000 miles in 2017, 51,000 miles in 2018, and 70,000 miles in 2019. Each of the three companies earned $53,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. |
Ignore the effects of income taxes. |
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