O Required information Problem 8-26A Determining the effect of depreciation expense on financial statements LO 8-2, 8-3, 8-4 (The following information applies to the questions displayed below.) Three different companies each purchased trucks on January 1, Year 1, for $72,000. 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 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3 and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight line depreciation, company Buses double- declining balance depreciation, and company Cuses units-of-production depreciation Answer each of the following questions, Ignore the effects of income taxes. Problem 8-26A Part a Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Calculate the net income for Year 1. (Round your "Per Unit Cost" to 3 decimal places.) Net Income Company A Company B Company C Required A2 > Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Which company will report the highest amount of net income for Year 1? Which company will report the highest amount of net income for Your 17 Problem 8-26A Part b b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? Complete this question by entering your answers in the tabs below. Required Bi Required B2 Which company will report the lowest amount of net income for Year 4? Which company will report the lowest amount of net income for Year 4? Problem 8-26A Part d d-1. Calculate the retained earnings on the December 31, Year 4. balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? Complete this question by entering your answers in the tabs below. Required D1 Required 02 Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? Which company will report the highest amount of retained earnings on the December 31, Year 4 balance sheet? Required 01 Problem 8-26A Parte e. Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows? The cash flow from operating Depreciation experise activities will be for if income tax is not considered. a cash flow item