6) Under the double declining balance method, the annual depreciation rate is multiplied by the __________ of the asset.

a) cost b) net book value

7) A vehicle that cost $20,000 when purchased was sold for $5,000. At the time of the sale, the vehicle had accumulated depreciation of $17,000. What is the gain or loss on the sale?

a) loss of $15,000

b) loss of $12,000

c) gain of $2,000

d) gain of $5,000