On January 3, 2024, On Time Delivery Service purchased a truck at a cost of $67.000. Before placing the truck in service, On Time spent $2.500 painting it $1,200 replacing tires, and 4,000 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual meage is expected to be 20.000 miles in each of the first fout years and 12.000 miles in the fifth you92,000 miles in total. In deciding which depreciation method to use, Harvey Wamer, 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 Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Book Date Cost Cost Life Expense Depreciation Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 On January 3, 2024. On Time Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, On Time spent $2,500 painting it. 51,200 replacing tires and 54000 overhauling the engine. The truck should remain in service for five years and have a residual value of 55,100. The truck's annual meage is erected to be 20.000 miles in each of the first four years and 12,800 mies in the fifth year-92,800 mies in total in deciding which depreciation method to use, Harvey Water, 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 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unt. Select the formula, then enter the amounts and calculate the depreciation experte per unit. (Round depreciation expense per unit to two decimal places) Depreciation per un On January 3, 2024. On Time Delivery Service purchased a truck at a cost of $67.000. Before placing the truck in service, On Timo spent $2.500 painting it 51200 replacing tires and 54.000 overhauling the engine. The truck should remain in service for five years and have a residual value of 55,100. The truck's annual mileage is expected to be 25,000 miles in each of the first fout years and 12,800 miles in the fin year-92,800 miles in total. In deciding which depreciation method to use, Harvey Wame the general manager requests a depreciation schedule for each of the depreciation methods (straight-ine, units of production, and double-deciring-balance) Read the requirements Prepare a depreciation schedule using the units of production method (Enter the depreciation per unit to two decimal places, sXXX) Units of Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 On January 3, 2024. On Time Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, On Time spent $2.500 pointing . 51.200 replacing tires and 54.000 overhauling the engine. The truck should remain in service for five years and have a residual value of 55,100. The truck's annual mileage is expected to be 20,000 miles in each of the first four years and 12.800 miles in the fifth year-92,800 miles in total. In deciding which depreciation method to use, Harvey Wamer, 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 Prepare a depreciation schedule using the double-declining balance (DDB) method. (Round depreciation exponse to the nearest whole dollar) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Book Date Cost Value Rate Expense Depreciation Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 12-31-2028 x X x Requirement 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 The depreciation method that reports the highest net income in the first year is the net income method. It produces the depreciation expense and therefore the highest
