Fixed Asset Disposal Accounting Explained for Beginners | Maxwell CPA Review

Hey everyone, Kyle Ashcraft here from Maxwell CPA Review! Confused about what happens to equipment when it's time to sell? This video dives into disposing of fixed assets. We'll use a popcorn machine example to show how depreciation affects value, then walk you through my 4-step process for recording the disposal. You'll also learn a handy formula to calculate gain or loss on the sale using net book value. Whether you're a business owner or student, this video will make fixed asset disposal in accounting a breeze!
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Learn how to dispose a fixed asset (aka property, plant, and equipment)! Examples are given to help you record depreciation and make the journal entries for selling fixed assets. I’ve included two different ways to calculate gain and loss journal entries.
Maxwell CPA Review was started by Kyle Ashcraft, whose passion is helping students pass the CPA in as little time and with as little stress as possible. Reach out to us at [e-mail] with any questions, including inquiries about private CPA tutoring!
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[@katherinepalacios2656]

explained this so clearly! commenting because this video truly needs more love. Thanks for your help.

[@MaxwellCPAreview]

Hi Katherine, your comment is so incredibly kind, thank you! My main goal is to breakdown difficult concepts into clear and simple steps, so I appreciate hearing that. If there's any way I can help, please let me know!

[@catiagm83]

You couldn't make the concept any easier. Absolutely brilliant video for people like me that find books too complicated and absolutely useless. I am very grateful for your work which is very appreciated!

[@laibahmehmood9425]

Finally, one video that is actually straightforward with its explanation. Cheers!

[@MaxwellCPAreview]

I am so glad to help!

[@daliadaas6387]

Thanks for sharing , I found it useful!

[@MaxwellCPAreview]

Hello Dalia! Thanks so much for the kind feedback. If I can help out in any way, then please let me know.

[@saifrashid6713]

Best and simple explanation. Thankyou

[@MaxwellCPAreview]

Thanks so much Saif!

[@GoodEveningDota]

god tier video

[@MaxwellCPAreview]

Thanks so much for the kind feedback!

[@FluffyMariam]

Perfect explanation. Thanks 🙏🏿

[@MaxwellCPAreview]

Thank you!

[@cibga]

great video.

[@amanabutt9239]

thank you. very well explained

[@MaxwellCPAreview]

Thank you very much Amana!

[@amanabutt9239]

@@MaxwellCPAreview Hi, When you get a chance, please make more videos on real asset management like disposals, additions, fixed asset reconciliations, depreciation (tangible) and amortization (intangible) as I am currently dealing with real asset management at work. So it will be a great help. Thanks

[@lulushaboo]

Thank youuu very helpful

[@MaxwellCPAreview]

Thanks so much Lucia!

[@amanulhaq9130]

Amazing. 👌

[@MaxwellCPAreview]

Thank you, Aman!

[@redflowers9471]

Hi Iam fatma from Egypt i love yr way in this video plz go on , need all about fixed assets. Exchange or loss fixed assets. Regards

[@MaxwellCPAreview]

Thanks so much!

[@silentrider4635]

Hey there what if historical cost of asset is $1000 andnaccumulated depreciation is $600 but the asset for some reason is sold for $1500 (i.e above historical cost ) then the excess $500 over historical cost will be credited to profit and loss or capital reserve ?

[@rliy001]

Why do we put the cash from sale on debit side?

[@MaxwellCPAreview]

Hi Rush, thanks for the question! Assets carry a debit balance and liabilities a credit balance. Since cash is an asset then it’s recorded as a debit.

[@camilascarpellini5928]

And where and how do I record that I my balance sheet and IS?

[@MaxwellCPAreview]

When you sell the fixed asset, you will decrease your assets. You will record a gain or loss to the income statement in the other income section.

[@walterleamy4623]

NBV is not “what it’s worth “. That’s the carrying value. The market determines the fair value

[@SIDHANT_DEB]

U cheat me