hapter 10 1. Dewees Brown purchased a used tractor for $35,000. Before the tractor could be used it required new tires, which cost $2,200, and an overhaul, which cost $2,800. Its first tank of fuel cost $150. The tractor is expected to last six years and have a residual value of $4.000 Determine a. Initial cost: 40 b. Depreciable costs were C. First year's depreciation under the straight-line method: 2. North End Oil Company purchased a drilling track for $90.000 North End expected the truck to last five years or 200,000 miles, with an estimated residual value of $15,000 at the end of that time. During 2015, the truck was driven 48,000 miles. North End's year end is December 31 Compute the depreciation for 2015 under each of the following methods a. Straight-line: Gujete - 750 b. Units-of-Activity C. Double-declining balance d. Using the amount computed in c, prepare the entry in joumal form to record depreciation expense for the second year and show how the Drilling Truck account would appear on the balance sheet. 3. Using the data given for North End Oil in problem 2, compute the depreciation for 2014 under each of the following methods, assuming that the truck was purchased on July 1, 2014, and was driven 20,000 miles during 2014 a. Straight-line b. Units-of-Activity: C. Double-declining balance 4. Mt. Sinai Hospital purchased a social x-ray machine. The machine, which cost $311,580 was expected to last ten years, with an estimated residual value of $31,560. After two years of operation (and depreciation charges using the straight-line method), it became evident that the x-ray machine would last a total of only seven years. The estimated residual value, however, would remain the same. Given this information, determine the new depreciation charge for the third year on the basis of the revised estimated life