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Asset Management Equipment Disposal Form Refrigerant Fa Ufl

Asset Management Equipment Disposal Form Refrigerant Fa Ufl

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in this video we're going to talk about how to account for the disposal of a fixed asset so fixed assets also are known as long-live dassit sand they're basically assets that provide value for longer than one year for the firm so it could be property plant and equipment or it could be some type of intangible asset but usually it's PP&E that we're thinking about when we're talking about a disposal so to calculate the gain or loss on the disposal what we're going to do is we're going to take the proceeds from the sale so if we sell a piece of equipment how much cash or what do we receive what's the proceeds and then we subtract the net book value of the asset which is the original cost minus the accumulated depreciation and that gives us the gain or loss now I know that's a lot to process so I want to walk through an example I think it'll make it a little bit easier for you to understand and I'll show you the journal entries and so forth so let's say January 1st 2018 you decide your fir

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