P10-31A On January 2, 2006, Speedway Delivery Service purchased a truck ata cost of $63,000. Before placing the truck in service, Speedway spent 2,200 painting it, $800 replacing tires, and $4,000 overhauling the engine. The truck should remain in service for 6 years and have a resid- ual value of $14,200. The truck's annual mileage is expected to be 18,000 miles in each of the first four years and 14,000 miles in each of the next two years-100,000 miles in total. In deciding which depre- ciation method to use, Jerry Speers, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance). Requirements 1. Prepare a depreciation schedule for each depreciation method, show- ing asset cost, depreciation expense, accumulated depreciation, and asset book value. (pp. 512-514) 2. Speedway prepares financial statements using the depreciation method that reports the highest net income in the early years of asset use. For income-tax purposes, the company uses the deprecia- tion method that minimizes income taxes in the early years. Consider the first year that Speedway uses the truck. Identify the depreciation methods that meet the general manager's objectives, assuming the income tax authorities permit the use of any of the methods. (pp. 515, 518-519)