Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale FSET 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 $ 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: 1. Cash equal to the book value of the plane. 2. $420,000 cash. 3. $1,260,000 cash. Sale price options 1 2 3 Cash Asset + Noncash Assets Balance Sheet Contra Assets Contributed Earned Liabilities + Capital + Capital Income Statement Revenues Expenses = Net Income

Computing Depreciation, Asset Boek Value, and Gain or toss on Asset Sale FSET estimated 14 year useful ife Sloar disposes of the plane at the end of Year 10. 4. Determine the following at the driposal date Aceumulated depreciation 1 Nee book value 1 b. Using the firuncial scatement effects template, show how the dypoul of the plane afrects the balance sheet and income statement astuming that the sales price is T. Cash equat to the book value of the plike. 2. $420,000 cash. 1,$1,240,000cash