For Questions $1-3,$ use the following scenario: Airways Corp plans to buy a new asset for $$95,000,$

and the cost to move it to the airport where it will be used is $$5,000.$ The estimated economic life of

the asset is $5$ years and managers have estimated the salvage value is $$20,000.$

Calculate depreciation expense and book value for Airways Corp. for the first $3$ years.

If Airways sells the asset for $$50,000$ after depreciation expense is recorded for year $2,$ what is

the gain or loss on the sale?

Alternatively, if Airway doesn't sell the asset but discovers that the fair value of the asset is

$$40,000$ at the very beginning of the fourth year, what is the impairment loss recognized?

Double$-$

Declining

Straight$-$line

Balance