Brainiac Company purchased a delivery truck for $30000 on January 1 2011. The truck has an expected salvage value of $2000 and is expected to be driven 100000 miles over its estimated useful life of 8 years.Actual miles driven were 15000 in 2011 and 12000 in 2012.Required:a. Compute depreciation expense for 2011 and 2012 using (1) the straight-line method (2) theunits-of-activity method and (3) the double-declining balance method.b. Assume that Brainiac uses the straight-line method. 1. Prepare the journal entry to record 2011 depreciation. 2. Show how the truck would be reported in the December 31 2011 balance sheet.
