Question

how do you find the gain of disposal?

how do you find the gain of disposal?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Gain on disposal of asset:

Fixed Asset:

Cash Dr (Amt Received)

Accumulated Depreciation Dr. (Book Value)

Fixed Asset Cr (Book Value)

Gain on Sale of Asset Cr (Balancing Figure)

In other words, Cash Received - (Fixed assets book value - Accumulated Depreciation Book value) = Gain on sale, if it's a positive value.

In case Accumulated Depreciation is not there and Fixed assets are at net value adjusted of depreciation then, Cash Received - Fixed Assets (net)= Gain, if it's a positive value.

cash received should be greater than (Assets - Accumulated Depreciation) or Net Value of Asset.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. how is a gain on disposal calculated? 2. how is a loss on disposal calculated?
1. how is a gain on disposal calculated? 2. how is a loss on disposal calculated?
how do you calculate economic gain?
how do you calculate economic gain?
How do you find the Price Next Year, the Rate of Capital Gain, and the Rate...
How do you find the Price Next Year, the Rate of Capital Gain, and the Rate of Return on a 1 year return of a bond with a 30 year maturity that has a 10% coupon rate and a face value of $1,000 and I increases from 10% to 20% in 1 year.
To determine whether there is a gain or loss on a disposal of a plant​ asset,...
To determine whether there is a gain or loss on a disposal of a plant​ asset, the​ asset's original cost is compared to the cash received and any other assets received for disposing of the plant asset. True or False
the gain or loss from disposal of property, plant and equipment is the difference between an...
the gain or loss from disposal of property, plant and equipment is the difference between an asset's book value and the value received. True or False TrueFalse
1. How do workers in a prison organization gain compliance to get someone to behave in...
1. How do workers in a prison organization gain compliance to get someone to behave in accordance with an order or directive given by another person?2.  What methods do prison guards use to gain compliance from prisoners.  Are these methods ethical?  What methods would you change and/or institute to gain their compliance? 3.  What remunerative power does a prison guard have to obtain compliance from prisoners in exchange for material resources?4.  What normative power does a prison guard have to...
A gain or loss on disposal of a fixed as is determined by comparing the Group...
A gain or loss on disposal of a fixed as is determined by comparing the Group of answer choices fair market value of the asset with the asset’s original cost the book value of the asset with the cash received from the sale historical cost of the asset with the cash received from the sale accumulated depreciation of the asset with the cash received from the sale
In some local government financial reports you will find activities such as solid waste disposal and...
In some local government financial reports you will find activities such as solid waste disposal and sewage disposal accounted for as a part of the General Fund. In other reports apparently identical activities are accounted for as enterprise funds. When is a government required to establish an enterprise fund?
how do you find a compounds boiling point also how do you find a compounds melting...
how do you find a compounds boiling point also how do you find a compounds melting point
What is and How do you find the Government-Purchases Multiplier? What is and How do You...
What is and How do you find the Government-Purchases Multiplier? What is and How do You find the Balanced-Budget Government-Purchases Multiplier? What is and how do you find the Tax Multiplier? Explain why G and T have different multipliers.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT