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

Palepu Company owns and operates a delivery van that originally cost $$54,400.$ Straight$-$line depreciation on the van has been recorded for three years, with a $$4,000$ expected salvage value at the end of its estimated six$-$year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposed of this van.

a$.$ Compute the net book value of the van on the sale date. $Answer $1$

b$.$ Compute the gain or loss on sale of the van if its sales price is for:

$($When applicable, use a negative sign with answers to indicate there is a loss on sale.$)$

$1.$ Cash equal to book value of van.Answer $22.$ $$30,000$ cash.Answer $33.$ $$24,000$ cash.Answer $4$