Question Help On January 1, 2018, Speedway Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Speedway spent $2,200 painting it, $800 replacing tires, and $11,000 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 26,000 miles in each of the first four years and 19,750 miles in the fifth year123,750 miles in total. In deciding which depreciation method to use, Harvey Warner, 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. chum asset cost depreciation This Test: Question On January 1, 2018, Speedway Delivery Service purchased a truck at a cost of $95,000. Before placing the truck in service, Speedway sperm painting it, $800 replacing tires, and $11,000 overhauling the engine. The truck should remain in service for five years and have a residual va $10,000. The truck's annual mileage is expected to be 26,000 miles in each of the first four years and 19,750 miles in the fifth year ---123,750 total. In deciding which depreciation method to use, Harvey Warner, the general manager, requests a depreciation schedule for each of the de 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 deprecia and asset book value. Begin by preparing a depreciation schedule using the straight-line method. Straight-Line Depreciation Schedule Depreciation f the Year Asset Depreciable Useful Depreciation Accumulated Book Date Cost Cost Life Expense Depreciation Value 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 Choose from any list of enter any number in the input fields and then continue to the next question o 12-31-2022 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. Select the formula, thene amounts and calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) Deprecation 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 IMMUNA. Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated Book Date Cost Per Unit Units Expense Depreciation Value 1-1-2018 12.31-2018 12-31-2018 12-31-2020 12-31-2021 12-31-2022 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dar) Book Asset Cost Book Depreciation for the Year DDB Depreciation Accumulated Rate Expense Depreciation Date Value Value 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 Requirement 2. Speedway prepares financial statements using the depleciation 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 of produces the depreciation expense and therefore the highest net income Chong liom any lista entor any number in the input fields and then continue to the next
