On January 2, 2016, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $4,000 painting it, $1,200 replacing tires, and $9,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, 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 Begin by preparing a depreciation schedule using the straig Straight-Line Depreciation Schedule Requirements Depreciation f 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Date Asset Cost Depreciable Cost Usefu Life 2. Reliable 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 Reliable uses the truck. Identify the depreciation method that meets the company's objectives. 1-2-2016 12-31-2016 12-31-2017 Print Done 12-31-2018 12-31-2019 12-31-2020 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) ( )/ )/ Depreciation per unit preciation of production manthad Enter the On January 2, 2016, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $4,000 painting it, $1,200 replacing tires, and $9,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, 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 Depreciation for the Year Date Asset Depreciable Cost Cost Useful Life Depreciation Accumulated Expense Depreciation Book Value 1-2-2016 12-31-2016 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 depreciation expense per unit to two decimal places.) Depreciation per unit )/ Deanna danramintian ankadula uning the units of munduation mathad Intartha danzaniation was smit to then decimal alanan v vi On January 2, 2016, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $4,000 painting it, $1,200 replacing tires, and $9,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, 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. Before completing the units-of-production depreciation schedule, 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 Date Asset Cost Depreciation Per Unit Number of Units Depreciation Accumulated Expense Depreciation Book Value 1-2-2016 12-31-2016 12-31-2017 12-31-2018 12-31-2019 X 12-31-2020 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule On January 2, 2016, Reliable Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Reliable spent $4,000 painting it, $1,200 replacing tires, and $9,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four years and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, 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. 12-31-2019 12-31-2020 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 Rate Depreciation Accumulated Expense Depreciation Book Value 1-2-2016 12-31-2016 12-31-2017 X 12-31-2018 12-31-2019 12-31-2020 X X Requirement 2. Reliable 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 Reliable 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