Linton Company purchased a delivery truck for $34,000 on January 1, 2022. The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2022 and 12,000 in 2023.

Instructions

a. Compute depreciation expense for 2022 and 2023 using 

(1) The straight-line method, 

(2) The units-of-activity method, 

(3) The double-declining-balance method.

b. Assume that Linton uses the straight-line method.

1. Prepare the journal entry to record 2022 depreciation expense.

2. Show how the truck would be reported in the December 31, 2022, balance sheet.