Acquisition and Depreciation of Assets Brough Oil Company, which prepares financial statements on a calendar-year basis, purchased new drilling equipment on July 1, 2018. A breakdown of the cost follows: Cost of drilling equipment Cost of cement platform Installation charges Freight costs for drilling equipment Total. $125,000 35,000 22,000 3,000 $185,000 Assuming that the estimated life of the drilling equipment is 20 years and its salvage value is $10,000: Record the purchase on July 1, 2018. Assume that the drilling equipment was recorded at a total cost of $140,000. Calculate the depreciation expense for 2018 using the following methods: Double-declining-balance b. 150% declining-balance 1. 2. a