on January 2, 2018 on time delivery service purchase a truck at a cost of $80,000. before placing the truck in service on time spent $3,000 pains in it, $1,500 replacing tires, and $7,500 overhaulibg the engine. The truck should remain in service for five years and have a residual value of $8,000. The trucks annual mileage is expected to be 30,000 miles in each of the first four year and 20,000 miles in the fifth year- 140,000 miles in total. in decising which depreciation method to uss, Carl Thomas, The general manager, request a depreciation schedule for each of the depreciation message (straight line, units of production, and double declining balance).

1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. On Time 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 On Time uses the truck. Identify the depreciation method that meets the company's objectives Print Done Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Date Cost Cost Life Expense Book Accumulated Depreciation Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 11 12-31-2021 12-31-2022 Book Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation 1-2-2018 12-31-2018 X 12-31-2019 12-31-2020 Value X 12-31-2021 12-31-2022 X Book Value Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Date Cost Value Rate Expense Depreciation 1-2-2018 12-31-2018 12-31-2019 X 12-31-2020 12-31-2021 12-31-2022 X 11 = 11