Burnout Oil Corporation uses the full cost method. Recently, the company

acquired a truck costing $$60,000$ with an estimated life of five years $($ignore

salvage value$).$ The foreman drives the truck to oversee operations on five leases,

all in the same general geographical area but on multiple reservoirs. The foreman

keeps a log of his mileage in order to determine how the truck is utilized. Anal$-$

ysis of the $log$ indicated that $\frac{1}{3}$ of the mileage driven was related to travel to

drilling operations, $\frac{1}{3}$ was related to travel to G&G exploration areas, and $\frac{1}{3}$

was related to travel to production locations. Total net capitalized costs, including

the truck above, are $$2,300,000.$ Proved reserves at the beginning of the year

were $300,000$ barrels, and production during the year was $30,000$ barrels. Burnout

amortizes all possible costs.

REQUIRED: Give any entries necessary to record depreciation on the truck for

the first year that it was in service.