Question
[The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2016, for $58,000. Each truck was expected
[The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2016, for $58,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 78,000 miles in 2016, 55,000 miles in 2017, 50,000 miles in 2018, and 73,000 miles in 2019. Each of the three companies earned $47,000 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.
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