Picard Company bought a truck on January 1, 2012 that cost $50,000 and had an estimated salvage value of $5,000. Picard expects to drive the truck 100,000 miles over estimated useful life of 8 years.

1. Assume Picard uses straight line depreciation. Prepare the journal entry to record 2012 depreciation.

2. Indicate the effect (increase, decrease, or no effect) the transaction in question 1 has on assets and net income.

Assets = Net Income =

3. Assume Picard uses straight line depreciation, and after using the truck for seven years, it is wrecked in an accident on January 1, 1019. Prepare Picards entry to record the retirement of the truck.

4. Assume Picard uses Units of Activity Depreciation. In 2012, they drove the truck 11,000 miles. Compute the 2012 depreciation expense.

5. Assume Picard uses double declining balance depreciation. Compute 2012 depreciation expense.

6. Assume Picard uses double declining balance depreciation, and after using the truck for two years, it is sold for $30,000. Prepare Picard's entry to record the sale of the truck.