Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. 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. c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.) c-2. Which company will report the highest book value on the December 31, 2020, balance sheet? multiple choice Company A Company B Company C All of the choices
Three different companies each purchased trucks on January 1, 2018, for $62,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $2,000. All three trucks were driven 75,000 miles in 2018, 60,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $51,000 of cash revenue during each of the four years. Company A uses straight-line
Answer each of the following questions. Ignore the effects of income taxes.
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c-1. Calculate the book value on the December 31, 2020,
balance sheet ? (Round "Per Unit Cost" to 3 decimal places.)
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c-2. Which company will report the highest book value on the December 31, 2020, balance sheet?
multiple choice
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Company A
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Company B
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Company C
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All of the choices
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