Jacob Manufacturing purchased a new truck on April 1, 2005 for $30,000. The truck is expected to have a residual value of $2,000 and its useful life is anticipated to be seven years. The company uses the straight-line method of depreciation. Jacob Manufacturing has a December 31** year-end. 1. Calculate the depreciation expense for the first year (December 31, 2005). Second year December 31, 2006. How much is the net book value at Dec 31 2006?. Then calculate the gain or loss on the sale assuming the truck was sold on Dec 31 2006 for $23,500