On January 1, 2016, Speedy Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Speedy spent $2,500 painting it, $1,800 replacing tires, and $4,700 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Mitch Halstrom, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the requirements. Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Requirements Depreciation for the Year Date Asset Cost Depreciable Cost Useful Life Depreciation Accumulated Expense Depreciation Book Value 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 1-1-2016 99000 12-31-2016 2. Speedy 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 Speedy uses the truck. Identify the depreciation method that meets the company's objectives. 12-31-2017 12-31-2018 12-31-2019 12-31-2020 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. (Round deprecia )/ = Depreciation per unit 99000 9000 )/ Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.) Units-of-Production Depreciation Schedule Print Done - Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.) Units-of-Production Depreciation Schedule Depreciation for the Year Date Asset Cost Depreciation Per Unit Number of Depreciation Accumulated Book Units Expense Depreciation Value 1-1-2016 12-31-2016 12-31-2017 12-31-2018 12-31-2019 X x X 12-31-2020 X X Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Date Asset Cost Book Value DDB Depreciation Accumulated Book Rate Expense Depreciation Value 1-1-2016 12-31-2016 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Date Asset Cost Book DDB Value Rate Depreciation Accumulated Book Expense Depreciation Value 1-1-2016 12-31-2016 12-31-2017 x X 12-31-2018 12-31-2019 12-31-2020 x X Requirement 2. Speedy 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 Speedy uses the truck. Identify the depreciation method that meets the company's objectives. The depreciation method that reports the highest net income in the first year is the method. It produces the depreciation expense and therefore the highest net income