Requirement 2.

Speedy

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

Speedy

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

double-declining-balance

straight-line

units-of-production

method. It produces the

highest

lowest

depreciation expense and therefore the highest net income.

SOLVE ASAP PLEASE

On January 1,2024 , Speedy Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Speedy spent $2,200 painting it, $500 replacing tires, and $11,800 overhauling the engine. The truck should remain in service for five years and have a residual value of $6,000. The truck's annual mileage is expected to be 23,000 miles in each of the first four yeat and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Steven Kittridge, 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 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.) 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 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule