Asset Sales
Illustrative Entry

 

06-30-X3

Accumulated Depreciation

 

75,000

 

 

Loss  

15,000

 
  Cash  

10,000

 
          Equipment

100,000

  Sold equipment costing $100,000 for $10,000.  The equipment was 75% depreciated on the date of sale.      

Note:  A Gain would be recorded if the sales proceeds exceeded the net book value of the asset sold.