Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale estimated $10-$year 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

$(2)$ net book value of the plane

b$.$ How much gain or $($loss$)$ is reported at disposal if the sales price is:

$\backslash$table$[[1.$ A cash amount equal to the plane's net book value.,$$],[2.$ $$2,565,000$ cash.,$$],[3.$ $$6,300,000$ cash.,$$]]$

Zimmer Company owns an executive plane that originally cost $$11,520,000.$ It has recorded straight$-$line depreciation on the plane for seven full years, calculated assuming a $$1,440,000$ expected salvage value at the end of its estimated $10-$year 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 $1$

$(2)$ net book value of the plane Answer $2$

b$.$ How much gain or $($loss$)$ is reported at disposal if the sales price is:

$1.$ A cash amount equal to the plane$$s net book value. Answer $3$

$2.$ $$2,565,000$ cash. Answer $4$

$3.$ $$6,300,000$ cash. Answer $5$