Exercise:
On January 2, 20X4, McIntosh Speed Company purchased a used trailer at a cost of $63,000. Before placing the trailer in service, the company spent $2,200 painting it, $800 replacing tires, and $4,000 overhauling the chassis. McIntosh management estimates that the trailer will remain in service for 6 years and have a residual value of $14,200. The trailer's annual mileage is expected to be 18,000 miles in each of the first four years and 14,000 miles in each of the next two years-100,000 miles in total. In deciding which depreciation method to use, Larry McIntosh, the general manager, requests a depreciation schedule for each of the depreciation methods (straight-line, units-of-production, and double-declining-balance).
Required: Prepare a depreciation schedule