Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011. The truck has an expected salvage

Brainiac Company purchased a delivery truck for $30,000 on January 1, 2011.  The truck has an expected salvage value of $2,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years.Actual miles driven were 15,000 in 2011 and 12,000 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.