Question Help On January 1, 2018, Quick Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Quick spent $3,000 painting it, $500 replacing tires, and $8,500 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, Jacob Nealy, 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 Asset Depreciation for the Year Depreciable Useful Depreciation Accumulated Cost Life Expense Depreciation Date Cost Book Value 80,000 80,000 1-1-2018 12-31- 2018 12-31- 2019 12-31- 84.000 5 years 16,800 16,800 75,200 84.000/ 5 years 16,800 33,600 58,400 Choose from any list or enter any number in the input fields and then continue to the next question ? (straight-line, units-of-production, and double-declining-balance). Book "Value Read the requirements. Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Date Cost Cost Life Expense Depreciation 1-1-2018 80,000 12-31- 2018 84,000/ 5 year 16,800 16,800 12-31 - 2019 84,000 16,800 33,600 12-31- 2020 84,000/ 5 years 16,800 50,400 12-31- 2021 84,000 16,800 67,200 12-31- 2022 years 16,800 84,000 80,000 11 75,200 5 years 11 58,400 = 41,600 5 years 24,800 5 8,000 Choose from any list or enter any number in the input fields and then continue to the next question. ? ZUZZ Uycana 10,000 09,000 0,00 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 Cost Residual value ) / unit 80,000 ( 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 Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation Book Value Choose from any list or enter any number in the input fields and then continue to the next question. ? (straight-line, units-of-production, and double-declining-balance). Book Read the requirements. Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Date Cost Per Unit Units Expense Depreciation 1-1-2018 12-31- 2018 12-31 - 2019 12-31- 2020 12-31- 2021 12-31- 2022 Value 80,000 X = X 11 Choose from any list or enter any number in the input fields and then continue to the next question. ? Read the requirements Book Value 80,000 Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Depreciation Accumulated Date Cost Value Rate Expense Depreciation 1-1-2018 80,000 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 continue to the next question ? = the requirements. 2018 12-31 - 2019 12-31- 2020 12-31 - 2021 12-31- 2022 11 11 X Requirement 2. Quick 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 Quick 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 straight-line method. It produces the lowest depreciation 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
