On January 13, 2011, Silverio Oil Company purchased a drilling truck for $45,000. Silverio expects the truck to last five years or 200,000 miles, with an estimated residual value of $7,500 at the end of that time. During 2012, the truck is driven 48,000 miles. Silverio’s year-end is December 31. Compute the depreciation for 2012 under the following methods:

(1) Straight-line,

(2) Production,

(3) Double-declining- balance.

Using the amount computed in 3, prepare the journal entry to record depreciation expense for the second year and show how the Drilling Truck account would appear on the balance sheet.