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If equipment is sold for $5,000 when it has a balance in PP&E of $100,000 and...

  1. If equipment is sold for $5,000 when it has a balance in PP&E of $100,000 and Accumulated Depreciation of $96,000, the journal entry for the sale should include

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Answer #1
Original cost of Property Plant and Equipment (PP&E) 100000
Less: Accumulated value -96000
Net Book Value of PP&E 4000
Calculation of Gain or Loss on sale of PP&E
Sales value 5000
Less: BOOK Value 4000
Net gain on sale of asset 1000
Journal entry
Account NAME Debit Credit
Cash 5000
Accumulated Depreciation 96000
     Property Plant & Equipment 100000
     Gain on sale of asset 1000
(To record sale of PPE)
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