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On January 2, 2018, On Time Delivery Service purchased a truck at a cost of $62,000. Before placing the truck in service, On Time spent $4,000 painting it, $800 replacing tires, and $3,200 overhauling the engine. The truck should remain in service for five years and have a residual value of $5,000. The truck's annual mileage is expected to be 28,000 miles in each of the first four years and 18,000 miles in the fifth year130,000 miles in total. In deciding which depreciation method to use, Alec Rivera, 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. Accumulated Depreciation Book Value Cost Straight-Line Depreciation Schedule Depreciation for the Year Asset Depreciable Useful Depreciation Date Cost Life Expense 1-2-2018 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.) DDB Accumulated Depreciation Book Value Double-Declining-Balance Depreciation Schedule Depreciation for the Year Asset Book Depreciation Date Cost Value Rate Expense 1-2-2018 12-31-2018 12-31-2019 12-31-2020 12-31-2021 12-31-2022

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