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Help with correct figure for Company C Three different companies each purchased trucks on January 1, Year 1, for $82,000. Each truck was expected to
Help with correct figure for Company C
Three different companies each purchased trucks on January 1, Year 1, for $82,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 79,000 miles in Year 1, 56,000 miles in Year 2, 51,000 miles in Year 3, and 71,000 miles in Year 4. Each of the three companies earned $71,000 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. Answer each of the following questions. Ignore the effects of income taxes. Required A Required B Required C Required D Required E b-1. Calculate the net income for Year 4. (Round your "Per Unit Cost" to 3 decimal places.) b-2. Which company will report the lowest amount of net income for Year 4? Net Income b- 1 $ Company A Company B Company C $ 52,000 66,750 49,984 X $ b- 2 Lowest net income Company CStep by Step Solution
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