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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 1 year ago
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