Answer requirements 1&2

P9-31A Determining asset cost, preparing depreciation schedules (3 methods), Learning Objectives 1, 2 and identifying depreciation results that meet management objectives On January 3, 2018, Rapid Delivery Service purchased a truck at a cost of $100,000 Before placing the truck in service, Rapid spent $3,000 painting it, 5000 replacing tires, and $10,400 overhauling the engine. The truck should remain in service for five years and have a residual value of $12,000. The truck's annual mileage is expected to be 32,000 miles in each of the first four years and 8,000 miles in the fifth year-136,000 miles in total. In deciding which depreciation method to use, Andy Sargeant, the gen- eral manager, requests a depreciation schedule for cach of the depreciation methods (straight-linc, units of-production, and double-declining-balance) 1. Units-af-production, 12/31/18, Dep Exp. Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset hook value. 2. Rapid prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. Consider the first year that Rapid uses the truck. Identify the depreciation method that meets the company's objectives