On January 1, 2024, Fast Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Fast spent $3,000 painting it, $800 replacing tires, and $5,200 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 year100,000 miles in total. In deciding which

On January 1,2024 , Fast Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Fast spent $3,000 painting it, $800 replacing tires, and $5,200 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, Alec Rivera, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Read the 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. On January 1,2024 , Fast Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Fast spent $3,000 painting it, $800 replacing tires, and $5,200 overhauling t 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, Alec Rivera, 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. Requirements Begir 1.Prepareadepreciationscheduleforeachdepreciationmethod,showingassetcost,depreciationexpense,accumulateddepreciation,andassetbookvalue.2.Fastpreparesfinancialstatementsusingthedepreciationmethodthatreportsthehighestnetincomeintheearlyyearsofassetuse.ConsiderthefirstyearthatFastusesthetruck.Identifythedepreciationmethodthatmeetsthecompanysobjectives