2. Mount Vernon Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Mount Vernon uses the straightline depreciation method. Calculate the annual depreciation expense. 3. Capsule Corps has developed a tract of land into a fitness training field. The company has cut the trees, cleared and graded the land and hills, and constructed obstacle courses. a. Should the tree cutting, land clearing, and grading costs of constructing the obstacle courses be debited to the land account? b. If such costs are debited to Land, should they be depreciated? Explain. 4. Mount Vernon Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for 120,000 miles. Mount Vernon uses the unitsof-production depreciation method and in year one it expects to use the truck for 23,000 miles. Calculate the annual depreciation expense. 5. Willow Creek Company purchased and installed carpet in its new general offices on April 30 for a total cost of $18,000. The carpet is estimated to have a 15 -year useful life and no residual value. a. Prepare the journal entry necessary for recording the purchase of the new carpet. b. Record the December 31 adjusting entry for the partial-year depreciation expense for the carpet, assuming that Willow Creek uses the straight-line method