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Three different companies each purchased trucks on January $1,$ Year $1,$ for $$62,000.$ Each truck was expected to last four years or $250,000$ miles. Salvage value was estimated to be $$5,000.$ All three trucks were driven $75,000$ miles in Year $1,60,000$ miles in Year $2,50,000$ miles in Year $3,$ and $70,000$ miles in Year $4.$ Each of the three companies earned $$51,000$ of cash revenue during each of the four years. Company A uses straight$-$line depreciation, company $B$ uses double$-$declining$-$balance depreciation, and company $C$ uses units$-$of$-$production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

Required

a$-1.$ Calculate the net income for Year $1.$

a$-2.$ Which company will report the highest amount of net income for Year $1?$

b$-1.$ Calculate the net income for Year $4.$

b$-2.$ Which company will report the lowest amount of net income for Year $4?$

c$-1.$ Calculate the book value on the December $31,$ Year $3,$ balance sheet.

c$-2.$ Which company will report the highest book value on the December $31,$ Year $3,$ balance sheet?

d$-1.$ Calculate the retained earnings on the December $31,$ Year $4,$ balance sheet.

d$-2.$ Which company will report the highest amount of retained earnings on the December $31,$ Year $4,$ balance sheet?

e$.$ Which company will report the lowest amount of cash flow from operating activities on the Year $3$ statement of cash flows?

Complete this question by entering your answers in the tabs below.

Required $A$

Required B

Required C

Required D

Required $E$

a$-1.$ Calculate the net income for Year $1.($Round "Per Unit Cost" to $3$ decimal places.$)$

a$-2.$ Which company will report the highest amount of net income for Year $1?$

$\backslash$table$[[,,$Net Income$],[$a$-1,$Company A$,$$$,36,750],[,$Company B$,$$$,25,500],[,$Company C$,,],[$a$-2,$Highest net income,,$]]$

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