DISCARDING A PLANT ASSET WITH NO BOOK VALUE

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Presentation transcript:

DISCARDING A PLANT ASSET WITH NO BOOK VALUE 1 1. Record entry to remove plant asset from accounts. 2 2. Write the date, amount, and type of disposal. Lesson 8-3, page 227

DISCARDING A PLANT ASSET WITH A BOOK VALUE 1. Record a partial year’s depreciation expense. 1 2. Record the partial year’s depreciation. 2 4. Record entry to remove plant asset from accounts. 4 3. Write the date, amount, and type of disposal. 3 Lesson 8-3, page 228

SELLING A PLANT ASSET 1 3 2 1. Compute the gain or loss on the sale. 3. Record entry to remove plant asset from accounts. 3 2 2. Write the date, amount, and type of disposal. Cash Received $185.00 Book Value of Asset Sold: Cost $600.00 Accum. Depr. 400.00 200.00 Gain (Loss) on Sale of Plant Asset $(15.00) Lesson 8-3, page 229

TRADING A PLANT ASSET 1. Compute the original cost of the new plant asset. 1 4. Record entry to remove old plant asset and add new plant asset. 4 2. Write the date and type of disposal and the new asset number. 2 3. Complete section 1 for the new plant asset. 3 Cash Paid $850.00 Book Value of Asset Traded: Cost $1,000.00 Accum. Depr. 765.00 235.00 Original Cost of New Plant Asset $1,085.00 Lesson 8-3, page 230

SELLING LAND AND BUILDINGS 2 2. Write the date, type, and amount of disposal. 3. Record entry to remove plant assets from accounts. 3 1. Compute the gain on sale of plant assets. 1 Lesson 8-3, page 231