On January 1, 2018, Speedy Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedy spent $2,200 painting it, $1,200 replacing tires, and $9,600 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year120,000 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 ti Depreciation for the Year Depreciable Useful Depreciation Accumulated Asset Book Date Cost Cost Life Expense Depreciation Value 10 1-1-2018 12-31-2018 + 12-31-2019 ... II 12-31-2020 12-31-2021 12-31-2022 II Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) = Depreciation per unit ): 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 Asset Depreciation Number of Depreciation Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-1-2018 12-31-2018 12-31-2019 x x x x 12-31-2020 12-31-2021 12-31-2022 II 12-31-2022 = 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 Asset Book DDB Depreciation Accumulated Book Date Cost Value Rate Expense Depreciation Value 1-1-2018 12-31-2018 Il 12-31-2019 xx 12-31-2020 11 L 11 12-31-2021 12-31-2022 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. method. It produces the The depreciation method that reports the highest net income in the first year is the depreciation expense and therefore the highest net income