Problem:
Sam's Subs purchased a delivery van on January 1, 2014, for $21,300. In addition, Sam's paid sales tax and title fees of $720 for the van. The van is expected to have a four-year life and a salvage value of $6,440.
Required:
Question 1: Using the Straight-Line method, compute the depreciation expense for 2014 and 2015. (Round your answers to the nearest whole dollar amount.)
Question 2: Assume the van was sold on January 1, 2017, for $11,885. Determine the amount of gain or loss that would be recognized on the asset disposal.
Note: Please provide full description.