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Required information [The following information applies to the questions displayed below] Three different companies each purchased trucks on January 1, 2018, for $90,000. Each truck
Required information [The following information applies to the questions displayed below] Three different companies each purchased trucks on January 1, 2018, for $90,000. 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 72,000 miles in 2018, 60,000 miles in 2019, 55,000 miles in 2020, and 65,000 miles in 2021. Each of the three companies earned $78,000 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? Company A Company B Company C All of the choices
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