Vermont wood manufactures Inc. purchased a light duty delivery truck for $32,000 that has a 7-year service life. At the end of 7th year, it will be sold at a salvage value of $3000. The light duty delivery truck has been depreciated according to a 7 year MACRS property class.

Calculate the annual depreciation allowances over 7 years.

Calculate the annual book values over 7 years.

Is there a capital gains or loss and if so, how much is the gain / loss?