On January 2, 2024, Reliable Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Reliable spent $2,200 painting it, $1,200 replacing tires, and $8,600 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, Jordan Lipnik, 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 Date 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 Asset Depreciable Cost Cost Depreciation for the Year Useful Life + = = = **** Depreciation Accumulated Book Expense Depreciation. Value Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 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. Print Done - X Hilda Carr Associates surveys American eating habits. The company's accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account for each depreciable asset. During 2024, Hilda Carr Associates completed the following transactions: i (Click the icon to view the transactions.) Record the transactions in the journal of Hilda Carr Associates. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) CODE Jan. 1: Purchased office equipment, $111,000. Paid $70,000 cash and financed the remainder with a note payable. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Jan. 1 More info Jan. 1 Apr. 1 Sep. 1 Dec. 31 Purchased office equipment, $111,000. Paid $70,000 cash and financed the remainder with a note payable. Acquired land and communication equipment in a lump-sum purchase. Total cost was $360,000 paid in cash. An independent appraisal valued the land at $283,500 and the communication equipment at $94,500. Sold a building that cost $540,000 (accumulated depreciation of $240,000 through December 31 of the preceding year). Hilda Carr Associates received $340,000 cash from the sale of the building. Depreciation is computed on a straight-line basis. The building has a 40-year useful life and a residual value of $60,000. Recorded depreciation as follows: Communication equipment is depreciated by the straight-line method over a five-year life with zero residual value. Office equipment is depreciated using the double-declining- balance method over five years with a $2,000 residual value. Print - X Done Donahue Oil, Inc. has an account titled Oil and Gas Properties. Donahue paid $6,900,000 for oil reserves holding an estimated 800,000 barrels of oil. Assume the company paid $510,000 for additional geological tests of the property and $470,000 to prepare for drilling. During the first year, Donahue removed and sold 62,000 barrels of oil. Record all of Donahue's transactions, including depletion for the first year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Donahue paid $6,900,000 for oil reserves holding an estimated 800,000 barrels of oil. Record the payment for the oil reserves. Do not record payment for any additional costs associated with the oil reserves (geological testing and/or drilling). We will do this in the following entry. Date Accounts and Explanation Debit Credit Central Telecom, a communication service provider in lowa, Nebraska, the Dakotas, and Montana had the following transactions related to its intangibles during the year: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the entries to record Central Telecom's transactions during the year. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Feb. 13: Central Telecom purchased Simpson Wireless Enterprises for $560,000 cash plus a $840,000 note payable. Simpson's book value of assets was $900,000. Simpson's market value of assets and liabilities was $1,600,000 and $630,000, respectively. Date Accounts and Explanation Feb. 13 Debit CD Credit