Three different companies each purchased trucks on January 1, 2018, for $74,000. Each truck was expected...

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Accounting

Three different companies each purchased trucks on January 1,2018, for $74,000. Each truck was expected to last four years or250,000 miles. Salvage value was estimated to be $5,000. All threetrucks were driven 80,000 miles in 2018, 60,000 miles in 2019,45,000 miles in 2020, and 70,000 miles in 2021. Each of the threecompanies earned $63,000 of cash revenue during each of the fouryears. Company A uses straight-line depreciation, company B usesdouble-declining-balance depreciation, and company C usesunits-of-production depreciation.
Answer each of the following questions. Ignore the effects ofincome taxes.
Which company will report the lowest amount of cash flow fromoperating activities on the 2020 statement of cash flows?

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Depreciation for Company A under Straightline method Cost Salvage value Estimated useful life Depreciation for the year 2020 74000 5000 4 17250 Depreciation for Company B under Double See Answer

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