Three different companies each purchased trucks on January 1, 2018, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 62,000 miles in 2021. Each of the three companies earned $61,000 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.

1. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)

Net Income
Company A	not attempted
Company B	not attempted
Company C

1. b-2. Which company will report the lowest amount of net income for 2021?

• Company A

• Company B

• Company C

• All of the choices

c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)

Book Value
Company A	not attempted
Company B	not attempted
Company C

c-2. Which company will report the highest book value on the December 31, 2020, balance sheet?

• Company A

• Company B

• Company C

• All of the choices

Answer rating: 100% (QA)

Based on the information available we can summarize as follows Question 1b1 Net Income for 2021 Particulars Company A Company B Company C Revenue 6100... View the full answer