Question

Sam’s Subs purchased a delivery van on January 1, 2014, for $35,000. In addition, Sam’s paid sales tax and title fees of $1,500 for the van. The van is expected to have a four-year life and a salvage value of $6,500.

Required
a. Using the straight-line method, compute the depreciation expense for 2014 and 2015.
b. Assume the van was sold on January 1, 2017, for $21,000. Determine the amount of gain or loss that would be recognized on the asset disposal.



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  • CreatedMay 22, 2014
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