Transaction log truncating in MS SQL Server 2005/2008/R2

In Microsoft SQL Server 2005/2008/R2 truncation of transaction log is different than in SQL Server 2000.
Set the Recovery Model into Simple, and run the following script:

use <database-name> DBCC SHRINKFILE (N'<log-file-name>', 0);

Example:

use [base1c] DBCC SHRINKFILE (N’base1c_Log’, 0);