4 Reporting and analysing non-current assets (20 Marks) Assume WOW is considering investing in a new delivery truck. The following information is related to the acquisition and operation of the truck. Initial investment $66,000 Residual value $6,000 Useful life 5 years or 200,000km travel distance Annual revenue attributable to the investment $40,000 Annual operating expenses, excluding depreciation, associated with the investment $3,000 The truck will be in use for. 40,000 km in year 1 50,000 km in each of years 2 and 3 30,000 km in years 4 and 5 Required a. Use the table below to calculate the profit for the first three years from the proposed investment in truck using straight-line and unit-of-production depreciation methods. Show your workings. (12 Marks). Year Y1 Y2 Y3 Straight line method Units of production method b. WoW considers disposing the truck after three years of use, which depreciation method will allow them to accept an offer $26,000 without incurring loss from the disposal of the truck? Justify your answer. (8 Marks)