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PLANT ASSET DISPOSALS —SALES

Asset Sold at a Gain


Asset originally purchased on 1/1/96 is sold on 1/1/99 for $8,000.
Equipment Accumulated Depreciation-Equipment
20,000 12/31/96 5,000
12/31/97 5,000
12/31/98 5,000
Bal. 15,000
Book Value = $5,000
Entry:
Cash 8,000
Accumulated Depreciation-Equipment 15,000
Equipment 20,000
Gain on Disposal 3,000
Calculation of gain or loss on disposal:
Cash proceeds $8,000
Book value of asset 5,000
Gain on disposal $3,000

Copyright 1999 John Wiley & Sons, Inc. Weygandt/Principles 5e T T 10–I