On January 2, 2018, Fast Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Fast spent $3,000 painting it, $1,200 replacing tires, and $7,800 overhauling the engine. The truck should remain in service for five years and have a residual value of $8,000. The truck's annual mileage is expected to be 30,000 miles in each of the first four years and 20,000 miles in the fifth year-140,000 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 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Book Asset Cost Depreciation for the Year DDB Depreciation Rate Expense Accumulated Depreciation Book Value Date Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 Requirement 2. Fast 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 Fast 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. Choose from any list or enter any number in the input fields and then continue to the next question. CD Warehouse Company purchased a computer for $3,400, debiting Computer Equipment. During 2016 and 2017, CD Warehouse recorded total depreciation of $2,600 on the computer. On January 1, 2018, CD Warehouse traded in the computer for a new one, paying $3,000 cash. The fair market value of the new computer is $4,900. Journalize CD Warehouse's exchange of computers. Assume the exchange had commercial substance. Let's begin by calculating the gain or loss on the exchange of computer equipment on January 1. Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss) Journalize CD Warehouse's exchange of computers. (Record a single compound journal entry. Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Jan. 1 Choose from any list or enter any number in the input fields and then continue to the next