Accounting Principles E10.7 Financial Statement (LO 2) Linton Company purchased a delivery truck for $34,000 on January 1, 2020. 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 2020 and 12,000 in 2021. Compute depreciation using different methods. Instructions a. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of- activity method, and (3) the double-declining-balance method. b. Assume that Linton uses the straight-line method. 1. Prepare the journal entry to record 2020 Accounting Principles 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 2020 and 12,000 in 2021. Compute depreciation using different methods. Instructions a. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of- activity method, and (3) the double-declining-balance method. b. Assume that Linton uses the straight-line method. 1. Prepare the journal entry to record 2020 depreciation. 2. Show how the truck would be reported in the December 31, 2020, balance sheet. 0-37