1. VK Company purchased a truck on January 1, 2009, at a cost of $34000. The company estimated that the truck would have a useful life of 4 years and a residual value of $4000 required. A. calculate depreciation under the straight line and double-declining balance for 2009 - 2012. B). Which of the two methods in part 1 would result in (1) Lower net income in 2010? (2) Lower net income in 2012? explain the answer

2. Gopher Company purchased a truck on January 1, 2009, at a cash cost of $10,600. The estimated residual value was $400 and the estimated useful life was 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2012, the company sold the truck for $1,700 cash.

A. What was the depreciation expense amount per month?

B. What was the amount of accumulated depreciation on July 1, 2012?

C. Give the required journal entries on the date of disposal, July 1, 2012. (Assume no 2012depreciation had yet been recorded)