The Oil Company purchased a Drilling Truck for $90,000 on January 1, 2014.

The Company expected the Drilling Truck to last 5 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.

The Companys year-end is December 31.

Compute:

The Depreciation for 2015 under each of the following methods:

(a)

The Straight-line method; The Production method; The Double-declining Balance Method;

(b)

Using the amount computed under the Double-declining Method, prepare the entry in journal or in T-account form to record Depreciation Expense for the second year;

(c)

Show how the Drilling Truck Account would appear on the Balance Sheet at the end of the second year under the Double-declining Method of Depreciation;

(2) For an extra mark!

Carrying value:

1. Equals cost minus accumulated depreciation;

2. Equals cost minus residual value;

3. Is the expired cost of an Asset;

4. Is the same as residual value