Question

On January 3, 2018, On Time Delivery Service purchased a truck at a cost of $67,000. Before placing the truck in service, On Time spent $4,000 painting it, $1,700 replacing tires, and $2,000 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,100. The truck's annual mileage is expected to be 20,000 miles in each of the first four years and 12,800 miles in the fifth year 92,800 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-line, units-of-production, and double-declining-balance) Read the requirements 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 Useful Life AssetDepreciable Depreciation Accumulated Book Date Cost Cost xpenseDepreciation Value 1-3-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 5 years /5 years 5 years /5 years / 5 years

Answer 1

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