Required Information (The following information applies to the questions displayed below] Three different companies each purchased...

Based on the information available in the question, we can answer as follows:-

Step 1:- Calculate the Depreciation expense for each of the trucks :-

Company A truck:-

(Cost of the asset - Salvage value)/Estimated life of the asset

=($88,000 - $6,000)/4 years

=$82,000/4 years

Depreciation expense = $20,500 per year

Company B truck:-

=100/4 years

=25% * 2

=50%

Company B Truck - $88,000 * 50%

Company B Truck Depreciatione expense = $44,000

Company C Truck:-

= (Cost of the asset - Salvage value)/Estimated miles * Miles driven

= ($88,000 - $6,000)/250,000 * 52,000 miles

= $0.328 per mile * 52,000 miles

= $17,056

Company C Depreciation expense = $17,056

The cash flow from operating activitites will be The same for all the 3 companies if the income tax is considered. Depreciation expense is not a cash flow item.

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