Computing Depreciation Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $52,400, Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. a Compute the net book value of the van on the disposal date. b. Compute the gain or loss on sale of the van if the disposal proceeds are: Use a negative sign with your answer if the sale results in a loss. 1. A cash amount equal to the van's net book value, $ 2. $23,100 cash 3. $19,100 cash. $