On January 3, 2024, Speedway Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedway spent $2,200 painting it, $2,500 replacing tires, and $8,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Alec Rivera, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of- production, and double-declining-balance). Read Requirements Req Begi 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. Stra 2. Speedway 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 Speedway uses the truck. Identify the depreciation method that meets the company's objectives. 11 11 Print Done - ation, and asset book value. 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 Date Asset Cost Depreciable Useful Cost Life Depreciation Accumulated Expense Depreciation Book Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 + + || || 12-31-2028 + 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, $X.XX.) Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Date Cost Per Unit Units Depreciation Accumulated Book Expense Depreciation Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 || || || || 12-31-2028 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 Asset Book DDB Date Cost Value Rate Depreciation Accumulated Expense Depreciation Book Value 1-3-2024 12-31-2024 12-31-2025 12-31-2026 12-31-2027 || || || || = 12-31-2028 Requirement 2. Speedway 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 Speedway 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