Homework Answers
Depreciation per year = (Cost - Salvage value) /Useful life
= (58,000-5000)/10 = 5300 per year
Book value after 4 years = 58,000 - (5300*4) = 36,800
| 37,000 cash | Gain | 200 |
| 36,800, cash | neither | 0 |
| 28,000 cash | loss | 8,800 |
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