The Blachard Transport Company has many trucks that have an estimated useful life of 450,000 miles. The company computes depreciation on a mileage basis. Suppose Blachard purchases a new truck for $120,000 cash. Its expected residual value is $12,000. Its mileage during year 1 is 85,000 and during year 2 is 110,000. Requirements What is the depreciation expense for each of the 2 years? 2 Compute the gain or loss if Blachard sells the truck for $55,000 at the end of year two. 1. Requirement 1. What is the depreciation expense for each of the 2 years? Before computing the annual depreciation amounts, start by selecting the formula and solving for the depreciation expense per mile and then select the annual depreciation formula. Start by selecting the formula and entering the amounts to solve for the depreciation expense per unit. (Round to the nearest cent.) Depreciation per mile i Next, select the formula you will need compute the annual depreciation. = Annual Units of Production Depreciation Now, compute depreciation for each of the 2 years. (Round to the nearest whole dollar.) Annual Units of Production Depreciation Year 1 Year 2 Requirement 2. Compute the gain or loss if Blachard sells the truck for $55,000 at the end of year two. Before computing the gain or loss, start by computing the net book value of the truck when sold. Select the formula and solve for the amounts used in calculating the book value of the truck at the end of year two. = Net Book Value = Finally, we'll calculate the gain or loss on the sale of the truck. Start by selecting the formula and solve for the amounts to calculate gain or loss on the sale of the truck. (Use parentheses or a minus sign for a loss on sale of truck.) Gain (Loss) on sale of truck