Calculate sale proceeds using net book value and loss on disposal Steps:

• Annual depreciation = ($100,000 cost -$20,000 residual value) / 10 years = $8,000.
• Accumulated depreciation after 5 years = 5 × $8,000 =$40,000.
• Net book value at sale = $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 IFRS or GAAP, loss on disposal equals net book value minus proceeds, so proceeds = net book value - loss.

Why the others are wrong:

• A. $48,000: Subtracts an extra$2,000, possibly from rounding or misapplying residual value.
• C. $58,000: Subtracts only$2,000 from net book value, understating the loss.

Final answer: B