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Three different companies each purchased trucks on January 1, Year 1, for $54,000. Each truck was expected to last four years or 250,000 miles. Salvage

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Three different companies each purchased trucks on January 1, Year 1, 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 75,000 miles in Year 1, 60,000 miles in Year 2. 50,000 miles in Year 3, and 70,000 miles in Year 4. Each of the three companies earned $41,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company Buses double-declining-balance depreciation, and company Cuses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required 2-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31. Year 3, balance sheet. c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet? d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? e. Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? Retained Earnings d-1 Company A Company B Company C Highest retained earrings d-2 Each are the same

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