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