Linton Company purchased a delivery truck for $34,000 on January 1, 2019. The truck has an expected salvage value of $2,000, and s expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,000 in 2019 and 12,000 in 2020.

Instructions

1. Compute depreciation expense for 2019 and 2020 using
   
   1. the straight-line method,
   2. the units-of-activity method, and
   3. the double-decline-balance method.
2. Assume that Linton uses the straight-line method.
   
   1. Prepare the journal entry to record 2019 depreciation.
   2. Show how the truck would be reported in the December 31, 2019, blance sheet.

Solution