# The Income Statement125Problem 2The Adams Café sold three pieces of equipment during 20X1, as follows:ntmoo ort aA1. A range costing \$6,000 and depreciated down to \$1.000 was sold for a “gain" of \$500.How much cash was received?CO:2. A delivery van that originally cost \$30,000 was depreciated using the straight-linemethod over a three-year life. Assume a salvage value of \$3,000. At the end of exactlytwo years of use, the van was sold for \$15,000. What was the gain or loss on the sale?3. A computer that originally cost \$3,000 was sold for \$500 after the Adams Café used itfor a single year. It was being depreciated using the double declining balance method.Assume its estimated life when it was purchased was three years. What was the gainor loss on the sale?Problem 3banupsRThe Tong Lee Inn had total revenues of \$600,000 for the month of June. Assume that theTong Lee Inn's percentages for June were the same as the comparative results of operationsinformation shown in Exhibit 8 for 2013.

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