Example Exercise 6

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Example Exercise 6
Sale of Equipment
When fixed assets are sold, both the cost and the
accumulated depreciation are removed from the
accounting records.
Gain
Selling price gt book value
Loss
Selling price lt book value
2
Example Exercise 6
Assume that equipment that was purchased at a
cost of 10,000 is sold for 3,800. The
accumulated depreciation on the date of the sale
was 7,000.
.
Book Value 3,000 (10,000 7,000)
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Example Exercise 6
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Example Exercise 6
6
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Example Exercise 6
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Example Exercise 6
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6A, 6B
? For Practice PE 6A, PE 6B