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Required information Problem 6-24 Determining the effect of depreciation expense on financial statements LO 6-2, 6-3, 6-4 [The following information applies to the questions displayed

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Required information Problem 6-24 Determining the effect of depreciation expense on financial statements LO 6-2, 6-3, 6-4 [The following information applies to the questions displayed below] Three different companies each purchased trucks on January 1, 2018, for $60,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 79,000 miles in 2018, 47,000 miles in 2019, 51,000 miles in 2020, and 74,000 miles in 2021. Each of the three companies earned $49,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.) Net Income Company A Company B Company C a-2. Which company will report the highest amount of net income for 2018? O Company A O Company B O Company C O All of the choices b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.) Net Income Company A Company B Company C b-2. Which company will report the lowest amount of net income for 2021? O Company A O Company B O Company C O All of the choices c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.) Book Value Company A Company B Company C c-2. Which company will report the highest book value on the December 31, 2020, balance sheet? O Company A O Company B O Company C O All of the choices d-1. Calculate the retained earnings on the December 31, 2021, balance sheet? Retained Earnings Company A Company B Company C d-2. Which company will report the highest amount of retained earnings on the December 31, 2021, balance sheet? O Company A O Company B O Company O All companies have the same retained earnings e. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows? for if income tax is not considered. The cash flow from operating activities will be Depreciation expense a cash flow item

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