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On January 3,2018, Speedway Delivery Service purchased a truck at a cost of $75,000. Before...

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Accounting

On January 3,2018, Speedway Delivery Service purchased a truck at a cost of $75,000. Before placing the truck in service, Speedway spent $3,000 painting it, $2,500 replacirg tires, and $7,500 overhauling the engine. The truck should remain in service for five years and have a residual value of $10,000. The truck's annual mileage is expected to be 27,000 miles in each of the first four years and 12,000 miles in the fifth year-120,000 miles in total. In deciding which depreciation method to use, Steven Kittridge, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-ofproduction, and double-declining-balance).
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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
\table[[Date,Asset,Depreciation for the Year,\table[[Accumulated],[Depreciation]],\table[[Book],[Value]]],[\table[[Depreciable],[Cost]],\table[[Useful],[Life]],\table[[Depreciation],[Expense]]],[1-3-2018
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