Jim Reed manages a fleet of utility trucks for a rural county government. He's been in his job 30 years, and he knows where the angles are. He makes sure that when new trucks are purchased, the salvage value is set as low as possible. Then, when they become fully depreciated, they are sold off by the county at salvage value. Jim makes sure his buddies in the constructionbusinessare first in line for the bargainsales, and they make sure he gets a little something back. Recently, a new county commissioner was elected with vows to cut expenses for the taxpayers. Unlike other commissioners, this man has abusinessdegree, and he is coming to visit Jim tomorrow. Could anyone help me answer this so that I can get a better understanding of the questions being asked

When a business sells a fully depreciated asset for its residual value, is a gain or loss recognized?

How dobusinessesdetermine what salvage values to use for their various assets? Are there "hard and fast" rules for salvage values?

How would an organization prevent the kind offrauddepicted here?