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Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that or

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Answer #1
A Cost of delivery van $51,200
B Estimated Salvage value $5,000
C Useful Life in years 6
D=(A-B)/C Annual Depreciation $7,700 (51200-5000)/6
E=D*4 Accumulated Depreciation $30,800
F=A-E Book Value of asset at end of 4 years $20,400
a Net book value on disposal date $20,400
b) Gain if cash amount equal to net book value $0
Gain for disposal at $23000 cash $2,600 (23000-20400)
Loss for disposal at $19000 cash ($1,400) (19000-20400)
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