Account for disposal of an asset. (LO 5)

Analyze each of the following independent scenarios.

a. A company van that cost \(\$ 32,000\) had an estimated useful life of 8 years and no salvage value. After 6 years of using straight-line depreciation, the company sold the van for \(\$ 12,000\).

b. A copy machine that cost \(\$ 35,000\) had an estimated useful life of 5 years and a salvage value of \(\$ 5,000\). After 2 years of using double-declining balance depreciation, the company sold the copy machine for \(\$ 10,000\).

c. A company truck that cost \(\$ 48,000\) had an estimated useful life of 7 years and a salvage value of \(\$ 6,000\). After 5 years of using straight-line depreciation and driving the truck many miles on tough terrain, the company sold the completely worn-out truck for \(\$ 850\) for spare parts.

d. A state-of-the-art computer that cost \(\$ 29,000\) had an estimated useful life of 4 years and a salvage value of \(\$ 2,000\). After 3 years of using double-declining balance depreciation, the company sold the computer for \(\$ 6,000\).

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For each scenario, calculate the gain or loss, if any, that would result upon disposal.