Beta Company purchased a truck on Jan 1, 2012 for $690,000. The truck's life is estimated at 5 years, with a residual value of $90,000. The company uses the straight line method to depreciate the truck.

Requirements:

1. 1. What is the depreciation expense for the truck for the year ended on Dec 31, 2012?
2. 2. What is the book value of the truck on Dec 31, 2015? Show your calculation.
3. 3. If the truck was sold on Jan 1, 2016 for $190,000, what is the gain or loss on the disposal of the truck? Show your calculation.
   4. Where should the gain or loss on the disposal of the truck in item 3 above be reported in the companys 2016 income statement?