P10-31A (similar to) Question Help On January 3, 2018, Swifty Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Swifty spent $2.200 painting it. $600 replacing tires, and $9,200 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 fifth year140,000 miles in total. In deciding which depreciation method to use, Carl Thomas, 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, Accumulated Depreciation Book Value Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Date Cost Cost Life Expense 1-3-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 + = 12-31-2022 Choose from any list or enter any number in the input fields and then click Check Answer. 2 P10-31A (similar to) Question Help On January 3, 2018, Swifty Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Swifty spent $2,200 painting it, $600 replacing tires, and $9,200 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, Carl Thomas, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-dedining-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 Requirements Asset Depreciable Uso Date Cost Cost Lif 1-3-2018 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 12-31-2018 2. Swifty prepares financial statements using the depreciation method that reports the highest net income in the early 12-31-2019 years of asset use. Consider the first year tSwifty uses the truck. Identify the depreciation method that meets the company's objectives, 12-31-2020 12-31-2021 12-31-2022 Print Done Choose from any list or enter any number in the input fields and then click Check
