Quick-as-Lightning, a delivery service, purchased a new delivery truck for $40,000 on January 1, 2009. The truck is expected to have a useful life of ten years or 150,000 miles and an expected residual value of $3,000. The truck was driven 15,000 miles in 2009 and 13,000 miles in 2010.

Required:

1. Compute depreciation expense for 2009 and 2010 using the:

a. Straight-line method

b. Double-declining-balance method

c. Units-of-production method

2. For each method, what is the book value of the machine at the end 2009? At the end of 2010?