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On January 2, 2016, Trusty Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Trusty spent $3,000
On January 2, 2016, Trusty Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Trusty spent $3,000 painting it, $800 replacing tires, and $10,200 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 26,000 miles in each of the first four years and 19,750 miles in the fifth year-123.750 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. 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
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