Disposal of Fixed Assets

a fixed asset can be disposed of in two ways:

discarded

sold

what two entries are needed when disposing an asset

• record depreciation up to the date of disposal

• remove the asset and its related accumulated depreciation from the books, record any cash received, and record any resulting gain/loss

if an asset is fully depreciated, its book value equals ____

zero

if an asset has not been fully depreciated, you must first record additional depreciation up to the ____-

date of disposal