Your new company car arrived and you decided to sell the old one. You originally paid $35,000 for it, assumed a salvage value of $3,000 and were depreciating it over a four year period.

If you received $7,000 for it at the end of year 3, what would you report on the income statement?

- a loss of $11,000

- a loss of $4,000

- a gain of $4,000

- a gain of $7,0000

- N/A

Using the same information as in the previous question, what would you report on the Income Statement if you received $7,000 if it was at the end of year 4?

- a loss of $11,000

- a loss of $4,000

- a gain of $4,000

- a gain of $7,000

- none of the above

none of the above