Brainiac Company purchased a delivery truck for $30,000 on January 1, 2010.The truck has an expected salvage

Question:

Brainiac Company purchased a delivery truck for $30,000 on January 1, 2010.The truck has an expected 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 2010 and 12,000 in 2011.
Instructions
(a) Compute depreciation expense for 2010 and 2011 using
(1) The straight-line method,
(2) The units-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 2010 depreciation.
(2) Show how the truck would be reported in the December 31, 2010, balance sheet.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...