Western Oil Company, which prepares financial statements on a calendar-year basis, purchased new drilling equipment on July 1, 2003, using check numbers 1015 and 1016. The check totals are shown here, along with a breakdown of the charges. 1015 (Payee—Oil Equipment, Inc.): Cost of drilling equipment............... $ 75,000 Cost of cementiplationm’ss. .) ee.» cies 25,000 InstallatiomicharGescect-anvenne beer n kori 13,000 WO tall Wetereane cow, pire ceca hae oi hiopcca ae dene aera $113,000 1016 (Payee—Red Ball Freight): Freight costs for drilling equipment........ $ 2,000 Assume that the estimated life of the drilling equipment is 10 years and its salvage value is $5,000. 1. Record the disbursements on July 1, 2003, assuming that no entry had been recorded for the drilling equipment. 2. Disregarding the information given about the two checks, assume that the drilling equipment was recorded at a total cost of $95,000. Calculate the depreciation expense for 2003 using the straight-line method.