On January 1, 2018, Trusty Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Trusty spent $3,000 painting it, $600 replacing tires, and $9,400 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, Harvey Warner, 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 Asset Depreciation for the Year Depreciable Useful Depreciation Accumulated Cost Life Expense Depreciation Book Value Cost Date 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. Trusty 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 Trusty uses the truck. Identify the depreciation method that meets the company's objectives. Print Done 12-31-2022 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.) )/ J = 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 Asset Cost Depreciation for the Year Depreciation Number of Depreciation | Accumulated Per Unit Units Expense Depreciation Book Value Date 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 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 Date Cost Value Rate Expense Depreciation 1-1-2018 12-31-2018 12-31-2019 Book Value 12-31-2020 12-31-2021 12-31-2022 Requirement 2. Trusty 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 Trusty uses the truck. Identify the depreciation method that meets the company's objec 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. Choose from any list or enter any number in the input fields and then continue to the next question. highest lowest