Computer Processsing Equipments was acquired on January 2 at a cost of $ 125,000. The computer equipment has an estimated useful life of four years. The estimated residual value is $ 10,000.

Calculate the yearly depreciation, accumulated depreciation and book value for straight line and double declining using the table provided below.

		Straight Line
	Cost	Depreciation	Accumulated	Book Value
			Depreciation
1	$125,000
2	$125,000
3	$125,000
4	$125,000

		Double Declining
	Cost	Depreciation	Accumulated	Book Value
			Depreciation
1	$125,000
2	$125,000
3	$125,000
4	$125,000

Devon Oil acquired the rights to various oil reserves at $ 20,000,000 in March 1, 2009. The estimated barrels of oil are 5,000,000 barrels.

(a) Determine the estimated depletion cost per barrel of oil.

(b) If 800,000 barrels are extracted the first year, what is the depletion cost for the first year .

(c) Illustrate or explain the effects on the accounts and financial statements for the

depletion expense .

(a)

(b)

(c)

*Please show all equations/formulas