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

Lynch Company owns and operates a delivery van that originally cost $47,900. 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.**

$Answer 19300

**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.

- A cash amount equal to the van’s net book value. $Answer 0

- $21,800 cash. $Answer 2500

- $17,800 cash. $Answer -1500

**Computing Asset Related Ratios**

Dicks Sporting Goods included the following information in its year-end 2015 10-K

Sales | $7,870,964 |

PPE, gross | 2,787,536 |

Land | |

Construction in progress | 124,400 |

Accumulated depreciation | 1,317,429 |

PPE, net, at year-end 2014 | 1,203,382 |

Depreciation expense | 193,594 |

- Compute PPE turnover.

Round answer to one decimal place.

Answer 5.9

- Compute the average useful life.

Round answer to one decimal place.

Answer 13.8 years

c. Compute the percentage used up of the PPE.

Round answer to one decimal place (ex: 0.2345 = 23.5%)

Answer 49.5%