Bernie Ramon purchased a range for his Mexicana Diner on January 1, 20X1.

The cost was $3,000 and he estimated the life at ten years. On December 31, 20X8, he decided to sell the range. He has depreciated a range using the straight-line method and a salvage value of $-0- for eight years. The range is sold for $1,000.

Required:

1. Determine the net book value on the range on December 31, 20X8.

2 . Determine the gain on the sale of the range.

3. Prepare the journal entry to record the sale of the range.

4 . Assume the range had been sold for $500 rather than $1,000. How would this change your answers for #2 and #3?