THE options:

gain on sale of assets

loss on sale of assets

capital gains

increase/decrease

Your company purchases the following vehicles at the dates and values shown: Purchase Date Purchase Price Truck A 01 Jan 2005 $15000 Truck B 01 Jan 2006 $27000 Truck C 01 May 2006 $15000 Truck D 01 Jan 2007 $32000 (a) Your company issues income statements for each calendar year (i.e., assume your year-end is December 31st and you had no prior assets in this class). What is the total depreciation charge (i.e., dt) associated with these vehicles on the income statement in 2008 if you use declining balance depreciation with D=20%? Note that you expect each to have a useful life of five years and a salvage value of $7500. Depreciation charge of Truck A in 2008=$ Depreciation charge of Truck B in 2008=$ Depreciation charge of Truck C in 2008=$ Depreciation charge of Truck D in 2008=$ Total depreciation charge in 2008=$ (b) If you sold Truck D for $25 000 just before you issue the income statement for 2008 (i.e., it underwent its full scheduled depreciation in that year), how much would your net profit increase for 2008 if you used declining balance depreciation with D=20%? You would have a of $ in so your net income would by this amount in that year