Problem # 7 (15 points) Jeffries Company purchased a delivery truck for $50,000 on January 1, 2014.The truck has an expected salvage value of $4,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2014 and 12,000 in 2015. Instructions (a) Compute depreciation expense for 2014 and 2015 using (1) the straight-line method (2) the units-of-activity method, and (3) the double-declining balance method. (b) Assume that Jeffries uses the straight-line method. (1) Prepare the journal entry to record 2014 depreciation. (2) Show how the truck would be reported in the December 31, 2014, balance sheet. Solution to Problem # 7 a)STRAIGHT LINE METHOD