[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, 2016, for $54,000. 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 76,000 miles in 2016, 65,000 miles in 2017, 42,000 miles in 2018, and 71,000 miles in 2019. Each of the three companies earned $43,000 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.

40.

Required:

a-1.

Calculate the net income for 2016? (Round your "Per Unit Cost" to 3 decimal places.)

Company A
B
C

a-2.

Which company will report the highest amount of net income for 2016?

	Company A
	Company B
	Company C
	All of the above

41.

b-1.	Calculate the net income for 2019? (Round your "Per Unit Cost" to 3 decimal places.)

	Net Income
A
B
C

b-2.

Which company will report the lowest amount of net income for 2019?

	Company A
	Company B
	Company C
	All of the above

42.

c-1.

Calculate the book value on the December 31, 2018, balance sheet? (Round your "Per Unit Cost" to 3 decimal places.)

	Net Income
A
B
C

c-2.

Which company will report the highest book value on the December 31, 2018, balance sheet?

	Company A
	Company B
	Company C
	All of the above

43.

Required information

d-1.	Calculate the retained earnings on the December 31, 2019, balance sheet?

A
B
C

d-2.

Which company will report the highest amount of retained earnings on the December 31, 2019, balance sheet?

	Company A
	Company B
	Company C
	All of the above