Exercise 1. (20 points) On July 1, 2019, Philip Ward bought a used pickup truck at a cost of $5,300 for use in his business. On the same day, Ward had the truck painted blue and white (his company's colors) at a cost of $800. Mr. Ward estimated the life of the truck to be three years or 40,000 miles. He further estimates that the truck will have a $450 salvage value at the end of the Required: Record the journal entry on July 1, 2019, when all bills pertaining to the truck are paid. Compute the depreciation expense for the year 2019 using straight line depreciation. Compute the depreciation expense for the year 2020 using straight line depreciation Compute the depreciation expense for 2019 if the truck is driven 8,000 miles and the units of production method of depreciation have been used. Record the journal entry if the truck is sold for $2,600 cash on 2 January 2021