Disposal of Fixed Assets

This video shows how to account for the disposal of a fixed asset (aka long-lived asset). An example is presented to demonstrate the journal entry required to record the sale of a fixed asset. The video also explains how to calculate the gain or loss on the disposal.
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This video was funded by a Civic Engagement Fund grant from the Gephardt Institute for Civic and Community Engagement at Washington University in St. Louis.-
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[@Wiz99999]

Preparing for my final in Accounting 229, I appreciate the informative video. Keep up the fantastic work!

[@Lola_bonnita2149]

Great video, it really helped me with my assignment after I had watched one which confused me on the matter.

[@Edspira]

Awesome. Thanks for watching!

[@MyFinancialFocus]

Nice. These videos are really good.

[@SidSwagTV]

Thank you so much. I got a great understanding of this topic after watching your video

[@Edspira]

Awesome. Glad to help!

[@candidacain2513]

I misplaced a note card I made on a Property Plant and Equipment video. It explained how to calculate the amount of retired equipment from the balance sheet. Do you know which video has it? It explains the debits and credit to arrive at the amount of retired assets.

[@hannahelliott1362]

This helped so much! Thank you

[@saniahashmi8840]

Yeah i understood that we had to credit the equipment since we are getting rid of it but would you please explain why we debited accumulated depreciation? I mean we have to subtract it to get the b.v right?

[@joeybulford5266]

Where does this go on the income statement? Is the $18,000 an operating expense, or is it other expenses?

[@10003159]

gains and losses are not part of core business operations. in this example, the business does not function by selling these machines. therefore gains and losses are non-operating income

[@udriebadan2811]

What to do with Depreciation expense ??? How to record it??? Should we credit back depreciation expense???

[@nasseryousif1222]

And where does the debit balance of acumullated depreciation go on the balance sheet and trial balance ??????????? i need help plzz

[@thabisosibanda6109]

Thank you so much with this video it helped me

[@alexyusufbumali4723]

Thank you

[@24sevenshopping]

may I ask one question so where comes proceeds from the sale🤔 i think that would be the value of after charged deprecation am I right sir hope to get your reply soon

[@10003159]

Didn't you skip a couple of steps? An asset that is being disposed of needs to be reclassified as a held-for-sale current asset, and for that to be the case it needs to pass a couple of qualifications such as 1) it is reasonable that it is going to be sold within the next year and 2) that a buyer for the asset is being seeked out

[@lynnintan702]

If it's sold on credit.. can it still be consider as disposal

[@M.Evra91]

Yes. But i imagine you would use an AR account rather than cash

[@BHkpopfan]

why do we debit accumulated depreciation?

[@rad1c1e]

We need to remove the depreciation as we are disposing of the asset.

[@LyricalMusicFlow]

@@rad1c1e Can you explain further by what it means to remove the depreciation, why do we do this

[@rad1c1e]

@@LyricalMusicFlow When I say remove the depreciation, I meant to say reverse it. When disposing of the asset, it needs to be fully removed, both the cost element and its associated depreciation. I hope this makes sense?

[@icon818]

thank you sir

[@simeon-1383]

I swear the disposals account debit and entry and opposite?

[@maanidxb]

can anyone advise what if the NBV is zero and asset is fully depreciated??

[@M.Evra91]

Your gain would be a wholw lot higher.