E10.7 (Page 10 - 33): 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. 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. A firm's demand function is Q = 16 - P and its total cost function is defined as TC = 3 +Q+0.25 Q2. Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum