Analyze each of the following independent scenarios:

a. A machine that cost $22,000 had an estimated useful life of three years with salvage value of $1,000. After two years of using straight-line depreciation, the company sold the machine for $8,000.

b. A van that cost $40,000 had an estimated useful life of 10 years and a salvage value of $4,000. After 10 years of using straight-line depreciation, the company sold the completely worn-out van for $1,000 as scrap.

c. Equipment that cost $45,000 had an estimated useful life of eight years and a salvage value of $3,000. After four years of using double-declining balance depreciation, the company sold the equipment for $14,750. (Round to the nearest dollar.)

d. An asset that cost $21,000 had an estimated useful life of seven years and no salvage value. After six years of using straight-line depreciation, the company deemed the asset worthless and hauled it to the dump.

Requirement

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