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On January 3, 2018, Speedway Delivery Service purchased a truck al a cost of $65,000. Before placing the truck in service, Speedway spent $2.200 painting it, 5000 replacing tires, and $11,700 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 years and 13,000 miles in the fifthe year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, the general manager, requests a dopreciation schedule for oach of the depreciation methods (straight-ine, units-of production, and double-decining-balance) Read the egure 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 Depreciation for the Year Asset Depreciable Useful Depreciation Accumulated Book Date Cost Cost Life xpense Depreciation Value 1-3-2018 12-31-2018 12-31-2019 Choose from any list or enter any number in the input fields and then coninue to the next question Type here to search 1:10 PM On January 3, 2018, Speedway Delivery Service purchased a truck at a cost of $65,000 Before placing the truck in service, Speedway spent $2,200 painting it, $600 replacing tires, and $11,700 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 yoars and 13,000 miles in the fifth year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-ine, units-of production, and double-declining-balance) Read the requirements 12-31-2010 12-31-2020 12-31-2021 12-31-2022 Before completing the units-of-production depreciation schedule,, calculate the depreciation expense per unit. Select the formula, then enter the amounts and caloulate the depreciation expense per unit (Round depreciation expense per unit to two decimal places) Depreciation per unt Prepare a depreciation schedule using the units-of-production method. (Enter the depreciation per unit to two decimal places, $X XX) Units-of-Production Deoreciation Schedule Choose from any list or enter any number in the input fields and then continue to the next question. Units-of-Production Depreciation Schedule Depreciation for the Year Asset Depreciation Number of Depreciation Accumulated ook Date Cost Per Unit Expense Depreciation Value Units 1-3-2018 12-31-2018 X 12-31-2019 X 12-31-2020 12-31-2021 12-31-2022 x Choose from any list or enter any number in the input fields and then continue to the next question. On January 3, 2018, Speedway Delivery Service purchased a truck at a cost of $65,000. Before placing the truck in service, Speedway spent $2,200 painting it, $600 replacing tin 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 ye year-105,000 miles in total. In deciding which depreciation method to use, Harold Parker, the general manager, requests a depreciation schedule for each of the depreciation m- production, and double-declining-balance). Read the requirements. 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 Book DDB Depreciation Accumulated ook Date Cost Value Rate Expense Depreciation Value 1-3-2018 12-31-2018 X 12-31-2019 X 12-31-2020 12-31-2021 X Choose from any list or enter any number in the input fields and then continue to the next question. 12-31-2022 Requirement 2. Speedway 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 Speedway 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 method. It produces the depreciation expense and therefore the highest net income. Choose from any list or enter any number in the input fields and then continue to the next question 1:12 PM Type here to search ENG
