Required information [The following information applies to the questions displayed below.) Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 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 Company Company a-2. Which company will report the highest amount of net income for 2018? Company A Company B Company C All of the choices Required information [The following information applies to the questions displayed below.) Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 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. c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.) Book Value Company Company Company c-2. Which company will report the highest book value on the December 31, 2020, balance sheet? Company A Company B Company C All of the choices Required information [The following information applies to the questions displayed below.) Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 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. d-1. Calculate the retained earnings on the December 31, 2021, balance sheet? Retained Earnings Company Company Company d-2. Which company will report the highest amount of retained earnings on the December 31, 2021, balance sheet? Company A Company B Company C All companies have the same retained earnings Required information The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2018, for $70,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 41,000 miles in 2019, 39,000 miles in 2020, and 61,000 miles in 2021. Each of the three companies earned $59,000 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. e. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows? The cash flow from operating activities will be Depreciation expense if income tax is not considered. a cash flow item
