Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale

Sloan Company uses its own executive charter plane that originally cost $900,000. It has recorded straight-line depreciation on the plane for six full years, with a $90,000 expected salvage value at the end of its estimated 10-year useful life. Sloan disposes of the plane at the end of the sixth year. a. At the disposal date, what is the (1) accumulated depreciation and (2) net book value of the plane? (1) $Answer (2) $Answer

b. Prepare a journal entry to record the disposal of the plane assuming that the sales price is: 1. Cash equal to the book value of the plane.

2. $202,000 cash.

3. $700,000 cash.

Description	Debit	Credit
Cash	Answer	Answer
Answer
Answer	Answer
Answer
Answer	Answer
Description	Debit	Credit
Cash	Answer	Answer
Accumulated depreciation	Answer	Answer
Answer
Answer	Answer
Answer
Answer	Answer
Description	Debit	Credit
Cash	Answer	Answer
Answer
Answer	Answer
Answer
Answer	Answer
Airplane	Answer	Answer