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On January 1, 2018, Fast Delivery Service purchased a truck at a cost of $67.000. Before placing the truck in service, Fast spent $2,200 painting it, S600 replacing tires, and $4.900 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 year92.800 miles in total. In deciding which depreciation method to use, Harvey Warner, 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 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 Useful Depreciable Cost Depreciation Expense Accumulated Depreciation Book Value Date Cost Life 1-1-2018 12-31-2018 12-31-2019 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 formule, then enter the amounts and calculate the depreciation expense per unit. (Round depreciation expense per unit to two decimal places.) = Depreciation per unit Units-of-Production Depreciation Schedule Depreciation for the Year Depreciation Number of Depreciation Per Unit Units Expense Accumulated Asset Cost Book Date Depreciation Value 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Prepare a depreciation schedule using the double-declining-balance (DDB) method. (Round depreciation expense to the nearest whole dollar.) Double-Declining-Balance Depreciation Schedule Asset Book Depreciation for the Year DDB Depreciation Rate Expense Book Accumulated Depreciation Date Cost Value Value 1-1-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022 Requirement 2. Fast 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 Fast 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 V method. It produces the depreciation expense and therefore the highest net income

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