Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its own executive charter plane that originally cost $750,000. It has recorded straight-line depreciation on the plane for 6 full years, with a $70,000 expected salvage value at the end of its estimated 10-year useful life. Sloan disposes of the plane at the end of the sixth year. a. At the disposal date, what is the (1) accumulated depreciation and (2) net book value of the plane? (1)$ (2) $ b. Prepare a journal entry to record the disposal of the plane assuming that the sales price is: 1. Cash equal to the book value of the plane. Description Cash 2. $185,000 cash. Cash Description Accumulated depreciation 3. $580,000 cash. Cash Description = = = = Airplane Debit Credit Debit Credit Debit Credit