Brainiac Company purchased a delivery truckfor $39,220 on January 1, 2008. The truck has an expected salvagevalue of $2,910, and is expected to be driven 102,600 miles overits estimated useful life of 8 years. Actual miles driven were14,510 in 2008 and 11,278 in 2009.
Compute depreciation expense for 2008 and2009 using (1) the straight-line method, (2) the units-of-activitymethod, and (3) the double-declining balance method.
Assume that Brainiac uses the straight-linemethod. (1) Prepare the journal entry to record 2008 depreciation.(2) Show how the truck would be reported in the December 31, 2008,balance sheet.