Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Zimmer Company owns an executive plane that originally cost $768,000. It has recorded straightline depreciation on the plane for seven full years, calculated assuming a $96,000 expected salvage value at the end of its estimated 10year useful life. Zimmer disposes of the plane at the end of the seventh year.

a. At the disposal date, what is the (1) cumulative depreciation expense and (2) net book value of the plane? (1) Cumulative depreciation expense $Answer

(2) Net book value $Answer b. How much gain or loss is reported at disposal if the sales price is: Note: Do not use a negative sign with your answers.

	Sales Price	Gain or Loss
1.	A cash amount equal to the planes net book value.	Answer	AnswerGainLossNo gain or loss
2.	$171,000	Answer	AnswerGainLossNo gain or loss
3.	$420,000	Answer	AnswerGainLossNo gain or loss

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Computing and Evaluating Inventory Turnover for Two Companies Abercrombie & Fitch Co. (ANF) and TJX Companies (TJX) report the following information in their respective January 2016 10-K reports relating to their 2015 and 2014 fiscal years.

	Abercrombie & Fitch				TJX Companies
$ millions	Sales	Cost of Goods Sold	Inventories		Sales	Cost of Goods Sold	Inventories
2015	$3,733	$1,445	$353		$33,167	$24,257	$3,329
2014	3,744	1,430	461		29,078	20,777	3,218

Compute the 2015 inventory turnover for each of these two retailers. Round answers to two decimal places.

Inventory turnover rate
ANF	Answer
TJX	Answer