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On January 3, 2016, Speedway Delivery Service purchased a truck at a cost of $80,000....

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Accounting

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On January 3, 2016, Speedway Delivery Service purchased a truck at a cost of $80,000. Before placing the truck in service, Speedway spent $2,500 painting it, $1,500 replacing tires, and $8,000 overhauling the engine. The truck should remain in service for five years and have a residual value of $8,000. The truck's annual mileage is expected to be 30,000 miles in each of the first four years and 20,000 miles in the fifth year-140,000 miles in total. In deciding which depreciation method to use, Jacob Nealy, 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 Asset Depreciation for the Year Depreciable Useful Depreciation Cost Life Expense Accumulated Book Date Cost Depreciation Value 1-3-2016 12-31-2016 12-31-2017 12-31-2018 = 12-31-2019 =

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