Account for disposal of an asset. (LO 5)

Sweet Tooth Bakery disposed of an oven after using it for 4 years. The oven originally cost \(\$ 40,000\) and had associated accumulated depreciation of \(\$ 29,000\). Calculate the gain or loss on the disposal of the oven for each of the following situations:

a. The company sold the oven to a homeless shelter for \(\$ 8,000\).

b. The company sold the oven to a local restaurant for \(\$ 10,000\).

c. The company gave the oven to a hauling company in return for hauling the oven to the local dump. The oven was totally worthless.