Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Not sure where I'm going wrong . Can you please help? Required information Three different companies each purchased trucks on January 1, 2018, for $66,000.

Not sure where I'm going wrong . Can you please help?

Required information

Three different companies each purchased trucks on January 1, 2018, for $66,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 74,000 miles in 2018, 35,000 miles in 2019, 30,000 miles in 2020, and 68,000 miles in 2021. Each of the three companies earned $55,000 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.

  1. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)

Answer is complete but not entirely correct.

Net Income
Company A $40,250selected answer correct
Company B $35,000selected answer incorrect
Company C $34,940

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GAO Financial Audit Manual Volume 1 Updated April 2020

Authors: United States Government GAO

2020 Edition

B091PR8396, 979-8733135977

More Books

Students also viewed these Accounting questions