On January 2, 2024, Nimble Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Nimble spert $4.000 painting $2,500 replacing lies, and $8.000 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, Mitch Halstrom, 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 coet, depreciation expense, accumulated depreciation, and asset book value Begin by preparing a depreciation schedule using the straight-line method Straight-Line Depreciation Schedule Date 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 Asset Cost ( Depreciation for the Year Useful Life Depreciable Cost . W - D Depreciation Accumulated Depreciation Expense Book Value Before completing the units of production depreciation schedule, calculate the depreciation expense per unit. Select the formuls, then enter the amounts and calculate the depreciation expense per und Round depreciation expense per unit to two decimal places) Depreciation per un J. Diadenteciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal pias, XXXXX) On January 2, 2024, Nimble Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Nimble spent $4.000 paintegit, $2.500 replacing tres, and $8.000 overhauling the engine. The truck should remainin 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, Mich Halstrom, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-ine, units-of-production, and double-declining balance) Read the requirements Prepare a depreciation schedule using the units of production method. (Enter the depreciation par unit to two decimal places XXX) Units-of-Production Depreciation Schedule Date 1-2-2024 12-31-2004) 12-31-2025 12-31-2026 12-31-2027 12-31-2000 Asset Cost Depreciation for the Year Number of Units Depreciation Par Unit M W . W = Depreciation Accumulated Expense Depreciation Book Value Double-Declining-Balance Depreciation Schedule Date 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 Soul Ung the double-dedining-balance (DDB) method. (Round depreciation expense to the nearest whole do Asset Cost Book Valus Depreciation for the Year DDB Rate . = Depreciation Accumulated Book Expense Depreciation Value Requirement 2. Nemble prepares financial statements using the depreciation method that repons the highest not income in the early years of asset use. Consider the first year that Ninele uses the track 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 produces the depreciation expense and therefore the highest income
