On Januraty 2, 2018, Speedway Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Speedway spent $2,200 painting it, $1,500 replacing tires, and $5,300 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The trucks annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 in the fifth year -100,000 miles in total. In deciding which deprecation method to use, Milkail Johnson, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-lines, units of production, and double decking 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-ine method. Straight-Line Depreciation Schedule Asset Depreciable Cost Depreciation for the Year Useful Life Book Expense Depreciation Value 90 Date Cost 1-2-2018 90,000 12-31-2018 12-31-2019 12-31-2020 12-31-202 81000 5 years 10005 ears 16200 3240057600 16200 810005 years16200 48600][ 41400] years = L-162001810001 010001 ,-years- 9000 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit Select the formula, then enter the amounts and caloulate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places Residual value />Use'ulsioinunits-)- Degeeoation per unit (oo.ooo . 9.000. ), | 1 100,000 81 Choose from any list or enter any number in the input fields and then continue to the next question. Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X.XXx.) Units-of-Production Depreciation Schedule Depreciation for the Year Asset DepreciationNumber f Depreciation Accumulated Book Cost Date Per Unit Units Expense Depreciation Value 1-2-2018 90,000 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 90,000 81 x 81 x 81 x 81 x 21,0001 21,000 21,0001 = 6,000 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 DDB Rate Asset Depreciation AccumulatedBook Expense DepreciationValue Book Date Cost Value Choose from any list or enter any number in the input fields and then continue to the next question. 2-3-4Z 12-31-2022 16.000 Prepare a depreciation schedule using the double-dedining-balance (DD8) method. (Round depreciation expense to the nearest whole dolar.) Depreciation for the Year DDB Rate Asset Book Depreciation Accumulated Book Expense DepreciationValue Date Cost Value 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-202 12-31-202 Requirement 2 Speedway prepares financial stalements 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 dentify 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 depreciaion expense and therefore the highest net income Choose from any list or enter any number in the input fields and then continue to the next