On January 2, 2024, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty spent $4,000 painting it, $500 replacing tires, and $4,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Carl Thomas, 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 Asset Cost Depreciable Cost Depreciation for the Year Useful Life Depreciation Expense Accumulated 1 Depreciation Book Value 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2020 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then enter the amounts and calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) Depreciation per unit Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. Trusty 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 Trusty uses the truck. Identify the depreciation method that meets the company's objectives. On January 2, 2024, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty spent the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expe- miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Carl Thomas, the general manager, requ methods (straight-line, units-of-production, and double-declining-balance). Read the fequirements Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, then unit. (Round depreciation expense per unit to two decimal places.) +( Depreciation per unit = )+ Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.) Units-of-Production Depreciation Schedule Depreciation for the Year Date Asset Cost Depreciation Per Unit Number of Units Depreciation Accumulated Expense Depreciation Book Value 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 x x * On January 2, 2024, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty spent $4,000 painting it, $500 replacing tires, and $4,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Carl Thomas, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance) Read the fequirement Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Date Asset Cost Book Value DDB Rate: Depreciation Expense Accumulated Depreciation Book Value 1-2-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 Requirement 2. Trusty 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 Trusty 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 Income method. It produces the depreciation expense and therefore the highest net