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Fixed Asset Disposal Gain or Loss Recompute

What do these figures come to once the work is shown?

Gain or loss from proceeds less selling costs and net book value at disposal, compared with the gain or loss recorded.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Break (recorded less recomputed)
$6,000
Recorded gain less the recompute
Net book value at disposal
$108,000
Recomputed gain (loss)
$17,000
Drawn to one scale
Net book value at disposal$108,000
Recomputed gain (loss)$17,000
Recorded amount$23,000
Break (recorded less recomputed)$6,000
All results
MeasureResult
Net book value at disposal$108,000
Recomputed gain (loss)$17,000
Recorded amount$23,000
Break (recorded less recomputed)
Recorded is higher
$6,000
How this was worked out
Work shownrecomputed as you type
Net book value = cost - accumulated depreciation at the disposal date
Gain or loss = proceeds - costs to sell - net book value

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Net book value = cost - accumulated depreciation at the disposal date
  • Gain or loss = proceeds - costs to sell - net book value

How it works

A disposal removes both cost and accumulated depreciation. The gain or loss is what the entity received, net of selling costs, less what the asset was carried at. Depreciation must run to the disposal date before the net book value is measured.

Common errors: cost removed without its accumulated depreciation, depreciation not caught up to the disposal date, and proceeds netted against a trade-in on a new asset. Trace proceeds to the bank and the sale agreement.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

How is a trade-in handled?

The trade-in allowance is the proceeds. Record the new asset at its full cost.

What if the asset was scrapped?

Proceeds are zero or scrap value, and the loss equals the remaining book value plus removal costs.

Does a loss mean the asset was impaired earlier?

A large loss can signal that an impairment should have been recognized in an earlier period.

Formulas on this page are the standard definitions.

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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