Three different companies each purchased trucks on January 1, Year 1, for $56,000. 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 77,000 miles in Year 1,66,000 miles in Year 43,000 miles in Year 3, and 72,000 miles in Year 4. Each of the three companies earned $45,000 of cash revenue during each of th four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C use units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. a-1. Calculate the net income for Year 1. (Round "Per Unit Cost" to 3 decimal places.) a-2. Which company will report the highest amount of net income for Year 1 ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. a-1. Calculate the net income for Year 1. (Round "Per Unit Cost" to 3 decimal places.) a-2. Which company will report the highest amount of net income for Year 1 ? b-1. Calculate the net income for Year 4. (Round your "Per Unit Cost" to 3 decimal places.) b-2. Which company will report the lowest amount of net income for Year 4 ? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. c-1. Calculate the book value on the December 31, Year 3, balance sheet. (Round "Per Unit Cost" to 3 decimal places.) c-2. Which company will report the highest book value on the December 31 , Year 3 , balance sheet? Complete this question by entering your answers in the tabs below. 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
