S8-15 (similar to) : Question Help Smith Oil, a small Texas oil company, holds huge reserves of oil. Assume that at the end of 2018, Smith Oil's cost of oil reserves totaled approximately $48.1 million, representing 3.7 million barrels of oil reserves in the ground. Requirements 1. Calculate Smith Oil's depletion expense per barrel of oil. 2. Suppose Smith Oil removed 700,000 barrels of oil during 2019 and sold all of these barrels during the year. Record Smith Oil's depletion expense for 2019. Requirement 1. Calculate Smith Oil's depletion expense per barrel of oil. (Enter amounts in dollars and not in millions.) Smith Oil's depletion expense per barrel of oil is Score: 0 of 2 pts | 3 of 4 (2 complete) HW Score: 37.5%, 3 of 8 pts S8-12 (similar to) Question Help Questor Airways purchased a baggage-handling truck for $53,000. Suppose Questor Airways sold the truck on December 31, 2018, for $44,000 cash, after using the truck for three full years and accumulating depreciation of $28,000. Make the journal entry to record Questor Airways' sale of the truck. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Dec 31, 2018 Cash Accumulated depreciation, truck Gain on sale of truck % 58-8 (similar to) Question Help On January 1, Orbit Trucking purchased a used Kenworth truck at a cost of $40,000. Orbit Trucking expects the truck to remain useful for four years (380,000 miles) and to have a residual value of $2,000. Orbit Trucking expects the truck to be driven 76,000 miles the first year and 133,000 miles the second year. Compute second-year depreciation expense on the truck using the following methods a. Straight-line b. Units of production c. Double-declining balance Start by selecting the formulas needed to compute annual depreciation under each of the three methods. (Cost - Residual value) / Useful life in years [(Cost - Residual value) / Useful life in miles] x Miles driven Book value x [(1 / Useful life in years) x 2] = = Straight-line depreciation Units of production depreciation Double-declining balance depreciation a. Compute Orbit Trucking's second-year depreciation expense on the truck using the straight-line method. Second-year depreciation on the truck using the straight-line method is $ 9,500 b. Compute Orbit Trucking's second-year depreciation expense on the truck using the units of production method. (Round the depreciation per unit to the nearest cent, and round your final answer to the nearest whole dollar.) Second-year depreciation on the truck using the units of production method is $ Enter any number in the edit fields and then click Check Answer. 1 part Clear All Check Answer Romainia
