6. on January 3, 2018, fast delivery service purchased a truck at a cost of $95,000. Before placing the truck in service, fast spent $2,200 painting it, $500 replacing tires, and $11,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck annual mileage is expected to be 26,000 miles in each of the first four years in 19,750 miles in the fifth year- 123,750 Miles in total. And deciding which depreciation method to use, Stephen K, The general manager, requires a depreciation schedule for each of depreciation method (straight line, units of production, and double declining balance).

Requirement number 1: prepare a depreciation schedule for each depreciation method showing assets cost, depreciation this expense, accumulated depreciation, and assets book value.

- Begin by preparing a depreciation schedule using the straight-line method.

Before completing the units of production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then answer the amounts and calculate the depreciation expense per unit.

- Prepare a depreciation schedule using the units of production method.

- Prepare a depreciation schedule using the double declining balance (DDB) method.

Requirement number 2: fast prepares financial statements using the depreciation method that reports the highest net income in the early years of acid use. Consider the first year the fast uses the truck. Identify the depreciation method that meets the company objectives.

The depreciation method that records the highest net income in the first year is the _____ method. It produces the _____ depreciation expense and therefore the highest net income.