On January 1, 2018, Speedway Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Speedway spent $4,000 painting it, $2,500 replacing tires, and $2,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $9,000. The truck's annual mileage is expected to be 21,000 miles in each of the first four years and 16,000 miles in the fifth year-100,000 miles in total. In deciding which depreciation method to use, Jordan Lipnik, 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
On January 1,2018, Speedway Delivery Service purchased a truck at a cost of 590,000 Before placing the truck in service, 5 peedway spent $4,000 painting <.52 expected to be miles in each of the first four years and fith year- lotat deciding which depreclation method use jordan lipnik general manager requests a depreciation schedule for methods units-of-production double-declining-balance read reguitements requirement prepare showing asset cost expense aceumulated book valio begin by preparing depreciaton using stragkt-line method: requirements expense. accumulated value. speedway prepares financiat statements that reports highest net income early use. consider year uses truck. identify meets company objectives>
