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.
1. Calculate depreciation expense and book value for Airways Corp. for the first 3 years.
Year	Straight-line		Double-Declining-Balance
	Depreciation Expense	Book Value at End of Year	Depreciation Expense	Book Value at End of Year
1
2
3
2. If Airways sells the asset for $50,00 after depreciation expense is recorded for year 2, what is the gain or loss on the sale?
	Straight-line		Double-Declining Balance
	$ Amount (show as positive number)	Indicate if it's a gain or loss	$ Amount (show as positive number)	Indicate if it's a gain or loss
3. 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?
	Straight-line		Double-Declining Balance