Hole in the Wall, a supplier of concrete, purchased a new cement truck for $200,000 on July 1, 2020. Bob, the head accountant was debating which method of depreciation should be used in expensing the new truck. The following are the estimates Bob assigned to the truck: Useful life: 6 years Total estimated miles: 150,000 Salvage value: $20,000 As the newly minted accountant on Bobs team, he has asked you to calculate the first years depreciation expense under each of the following methods (be sure to state the depreciation expense in the form of a journal entry):

a. Straight-line:

b. Units-of-production (14,000 actual miles driven in 2020):

c. Double declining balance:

d. Which method would produce the highest net income for the year? At the end of the trucks useful life (June 30, 2026), Hole in the Wall sold the fully depreciated truck for $15,000 cash. Prepare the journal to reflect the sale of the truck. Depreciation has already been recorded for the year.