Question: Any work provided would be appreciated. Che Required information [The following information applies to the questions displayed below.] Three different companies each purchased trucks on
Che Required information [The following information applies to the questions displayed below.] Three different companies each purchased trucks on January 1, 2018, for $80,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $4,000. All three trucks were driven 78,000 miles in 2018, 55,000 miles in 2019,50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $69,000 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. d-1. Calculate the retained earnings on the December 31, 2021, balance sheet? Retained Earnings Company A Company B Company C d-2. Which company will report the highest amount of retained earnings on the December 31, 2021 balance sheet? o Company A Company B Company All companies have the same retained earnings
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
