On January 3, 2018, Quick Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Quick spent $2,200 painting it, $1,700 replacing tires, and 58, 100 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-ine, units-of-production, and double-declining-balance) Read the requirements Requirement 1. Prepare a depreciation schedule for each depreciation method, showing asset cont, depreciation expense, accumulated depreciation, and asset book Begin by preparing a depreciation schedde using the straight line method. Straight-Line Depreciation Schedule Depreciation for the Year Depreciable Useful Depreciation Accumulated Book Cost Expense Depreciation Value 1-3-2018 12-31-2018 Asset Date Cost Life 12-31-2019 1 12-31-2020 12-31-2021 12-31-2022 * Requirements X 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. Quick 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 Quick uses the truck. Identify the depreciation method that meets the company's objectives. Print Done 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 Prepare a depreciation schedule using the units of production method. (Enter the depreciation per unit to two decimal places, $XX.) Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-3-2018 12-31-2018 12.31.2019 12-31-2020 X X 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 Depreciation Accumulated Expense Depreciation Asset Book DDB Book Value Date Cost Value Rate 1-3-2018 12-31-2018 12-31-2019 1231-2020 12-31-2021 12-31-2022 Requirement 2. Quick 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 Quick 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