Requirements 1. Prepare a depreciation schedule for each depreciation method, showing asset cost, depreciation expense, accumulated depreciation, and asset book value. 2. On Time 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 On Time uses the truck. Identify the depreciation method that meets the company's objectives. Print Done On January 1, 2018 On Time Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service. On Time spent $4,000 painting it, 5000 replacing tires, and $8,400 overhauling the engine. The truck should remain in efore years and have a residual value of $10.000 The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fith year-120,000 miles in total In deciding which depreciation mo to use Andy Sergeant, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-Ine, units of production, and double-declining-balance) Heat the service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27.000 miles in each of the first four years and 12.000 miles in the fith year-120,000 miles in total. In deciding which dep Delivery Service purchased a truck at a cost of $75,000 Before placing the truck in service, On Time spent $4,000 painting . $600 replacing tres, and $8,400 overhauling the engine. The truck sho to use, Andy Sargeant, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units of production, and double-dedining balance) Read the moments CD 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 Date Asset Cost Depreciable Cost Depreciation for the Year Useful Life Depreciation Accumulated Book Expense Depreciation Value 1-1-2016 13-31-2016 12-31-2017 12-01-2018 12-31-2010 12-31-2020 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit (Round depreciation expense per unit two decimal places) Depreciation per unit Prepare a depreciation schedule using the units of production method. (Enter the depreciation per unt to two decimal places XXX) Units-of-Production Depreciation Schedule Depreciation for the Year Date Asset Cost Depreciation Per Unit Number of Units Depreciation Accumulated Book Expense Depreciation Value 12-31-2020 Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. (Round depreciation expense pe ( Pre Accumulated depreciation Un Cost Residual value Useful life in units Useful life in years =Depreciation per unit inits-of-production method. (Enter the depreciation per unit to two decimal places, $X.XX.) Depreciation for the Year Number of Units Depreciation Accumulated Book Expense Depreciation Value Before completing the units-of-production depreciation schedule, calculate the depreciation expense per unit. (Round depreciation expense per ur Depreciation 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 Depreciation for the Year Date Asset Cost Depreciation Per Unit Number of Units Depreciation Accumulated Book Expense Depreciation Value 1-1-2016 12-31-2016 12-31-2017 12-31-2018 12-31-2019 x 12-31-2020 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Date Cost Book Value DDB Rate Depreciation Accumulated Book Expense Depreciation Value Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book DDB Date Cost Value Rate Depreciation Accumulated Book Expense Depreciation Value 1-1-2016 12-31-2016 12-31-2017 12-31-2018 12-31-2019 2x (1/5) 12-31-2020 5 years Requirement 2. On Time prepares financial stat ation method that reports the highest net income in the early years of asset use. Cons meets the company's objectives. 5 years x 2 The depreciation method that reports the highest 120,000 miles ar is the method. It produces the depreciation ex Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book to Cost Value 1-2016 1-2016 1-2017 1-2018 1-2019 DDB Rate x B Depreciation Accumulated Book Expense Depreciation Value 1-2020 ement 2. On Time prepares financial statements using the depreciation met The company's objectives. preciation method that reports the highest net income in the first year is the double-declining-balance straight-line units-of-production ne in the early years of asset use. Consider the first year that On method. It produces the depreciation expense and therefore the ble-Declining Balance Depreciation Schedule Cute A Cost 14-2018 31-201 31-2017 -21-2018 Depreciation for the Year Rate Depreciation Accumulated Depreciation Book Value 31-2020 ment 2. On Time prepares financial statements using the depreciation method that reports the highest net income in the saty Consider the first year that On Time uses the truck, identify the depreciation method that depreciation expense and therefore the highest net income MacBook Air Submit quiz