Determining sale proceeds from net book value and loss on disposal Steps:

• Annual depreciation = (original cost - residual value) / useful life = ($100,000 -$20,000) / 10 years = $8,000 per year.
• Total depreciation after 5 years = $8,000 × 5 =$40,000.
• Net book value at sale = original cost - accumulated depreciation = $100,000 -$40,000 = $60,000.
• Sale proceeds = net book value - loss on sale = $60,000 -$10,000 = $50,000.

Why B is correct:

• Under straight-line depreciation and disposal accounting, proceeds = net book value - loss, reflecting the asset's carrying amount minus the shortfall on sale.

Why the others are wrong:

• A. $48,000: Underestimates proceeds, possibly from excess depreciation or misapplying loss.
• C. $58,000: Overestimates by ignoring full accumulated depreciation in book value calculation.
• D. $62,000: Overestimates further, likely from subtracting loss before adjusting for residual value.

Final answer: B