北大光华会计6.ppt

Assume that a machine costing $10,000, had accumulated depreciation of $8,000 and book value of $2,000 (10,000 - $8,000) at the time it was sold for $3,000 cash. Determine the gain or loss on sale of this machine. Remember that to determine gain or loss on disposal of an asset we compare the asset’s book value to the proceeds from the disposal. In our case, the cash received was more than the book value of the asset, so we have a gain on the sale of this machine of $1,000. Now, let’s look at the entry to record the sale of the assets. To record the disposal of the machine we debit Cash for