Asset Sales
Illustrative Entry
| 06-30-X3 |
Accumulated Depreciation |
75,000 |
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|
|
Loss |
15,000 |
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| Cash |
10,000 |
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| Equipment |
100,000 |
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| 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.