Question
In: Accounting
Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected...
Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 60,000 miles in 2021. Each of the three companies earned $40,000 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.
b-1. Calculate the net income for 2021?
Company A:
Company B:
Company C:
c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)
Company A:
Company B:
Company C:
d-1 Calculate the retained earnings on the December 31, 2021, balance sheet?
Company A:
Company B:
Company C:
Solutions
Expert Solution
for formulas and calculations, refer to the image below -
ekkarill92 answered 2 years agoRelated Solutions
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sheet of this transaction over the next five years.
Income statement
2020 2021 2022 2023 2024
Depreciation
expense $8000 $8000 $8000 $8000 $8000
Balance Sheet
2020 2021 2022 2023 2024
Equipment $ $ $ $ $
Less: accumulated
Depreciation ( ) ( ) ( ) ( ) ( )
Book
value $ $ $ $ $
Part II – Chapter 8
Company
A Company
B Company
C
Days sales in
receivables 8.3
days 39.9
days 60.3
days
Days sales in
inventory 2.3...
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