a a truck that cost 25 000 had an estimated useful life of 5 years and no salvage va 538673

Account for disposal of an asset. (LO 5)

Analyze each of the following independent scenarios.

a. A truck that cost $25,000 had an estimated useful life of 5 years and no salvage value. After 4 years of using straight-line depreciation, the company sold the truck for $6.000.

b. A machine that cost $50,000 had an estimated useful life of 12 years and a salvage value of $2,000. After 10 years of using straight-line depreciation, the company sold the completely worn-out machine for $400 as scrap.

c. An asset that cost $40,000 had an estimated useful life of 4 years and a salvage value of $2,000. After 3 years of using double-declining balance depreciation, the company sold the asset for $11,000.

d. A machine that cost $15,000 had an estimated useful life of 5 years and no salvage value. After 4 years of using straight-line depreciation, the company deemed the asset worthless and hauled it to the dump.

Required

For each scenario, calculate the gain or loss, if any, that would result upon disposal.