Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale FSET

disposes of the plane at the end of Year $10.$

a$.$ Determine the following at the disposal date:

Accumulated depreciation &

Net book value $

b$.$ Using the financial statement effects template, show how the disposal of the plane affects the

balance sheet and income statement, assuming that the sales price is:

Cash equal to the book value of the plane.

$$420,000$ cash.

$$1,260,000$ cash.Sloan Company uses its own executive charter plane that originally cost $$1,680,000.$ It has recorded straight$-$line depreciation on the plane for $10$ full years, with a $$168,000$ expected salvage value at the end of its estimated $14$ year useful life. Sloan disposes of the plane at the end of Year $10.$

a$.$ Determine the following at the disposal date:

Accumulated depreciation $Answer

Net book value $Answer

b$.$ Using the financial statement effects template, show how the disposal of the plane affects the

balance sheet and income statement, assuming that the sales price is:

$1.$ Cash equal to the book value of the plane.

$2.$ $$420,000$ cash.

$3.$ $$1,260,000$ cash.