Shining Cookie Company, Inc., in Murfreesboro, TN bought a new ice cream maker at the beginning of the year 1 at a cost of $10,000. The estimated useful life was four years, and the residual value was $1,000.

(1) Suppose the firm uses straight-line depreciation method, what is the firms depreciation expense in year 3? What is the firms depreciation expense in year 4?

(2) Suppose the firm uses double-declining-balance depreciation method, what is the firms depreciation expense in year 3? What is the firms depreciation expense in year 4?

In 2019, Shining Cookie Companysold a delivery truck that had been used in the business for three years. The records of the company reflected the following:

Delivery truck cost	$	58,000
Accumulated depreciation		43,000

(3) Prepare the journal entry for the disposal of the truck, assuming that the truck was sold for $16,100 cash.

(4) Assume that the truck was sold for $15,000 cash (as opposed to $16,100), is there any impact of the disposal on the income statement? Why?