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  • Fully Depreciated Asset: 1999 John Wiley & Sons, Inc. Weygandt/Principles 5e

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    Steven Sanderson
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    An asset that was originally purchased for $20,000 on 1/1/96 was fully depreciated and discarded on 1/1/00 with no salvage value. When recording the disposal of a fully depreciated asset, the accumulated depreciation account is debited for the total amount of depreciation taken over the life of the asset ($20,000) and the equipment asset account is credited to remove the asset from the books at its book value of $0.

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    TT 10-G5

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    An asset that was originally purchased for $20,000 on 1/1/96 was fully depreciated and discarded on 1/1/00 with no salvage value. When recording the disposal of a fully depreciated asset, the accumulated depreciation account is debited for the total amount of depreciation taken over the life of the asset ($20,000) and the equipment asset account is credited to remove the asset from the books at its book value of $0.

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    16 views1 page

    Fully Depreciated Asset: 1999 John Wiley & Sons, Inc. Weygandt/Principles 5e

    Uploaded by

    Steven Sanderson
    An asset that was originally purchased for $20,000 on 1/1/96 was fully depreciated and discarded on 1/1/00 with no salvage value. When recording the disposal of a fully depreciated asset, the accumulated depreciation account is debited for the total amount of depreciation taken over the life of the asset ($20,000) and the equipment asset account is credited to remove the asset from the books at its book value of $0.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    PLANT ASSET DISPOSALS —RETIREMENTS

    Fully Depreciated Asset


    Asset originally purchased on 1/1/96 is discarded on 1/1/00 and
    there is no salvage value.
    Equipment Accumulated Depreciation-Equipment
    20,000 12/31/96 5,000
    12/31/97 5,000
    12/31/98 5,000
    12/31/99 5,000
    Bal. 20,000
    Book Value = $0

    Entry:
    Accumulated Depreciation-Equipment 20,000
    Equipment 20,000
    Note: When recording a plant asset disposal, the plant asset account
    is always credited and the related accumulated depreciation
    account is always debited to remove them from the books.

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

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