Definition

Plant Asset Disposal

The accounting for disposal of a plant asset through retirement or sale as follows:

(a) Eliminate the book value of the plant asset at the date of disposal.

(b) Record cash proceeds, if any.

(c) Account for the difference between the book value and the cash proceeds as a gain or loss on disposal.

Share it:  Cite

More from this Section

  • Direct materials budget
    The direct materials budget shows both the quantity and cost of direct materials to be ...
  • Normal balance
    The normal balance of an account is on the side where an increase in the account is recorded. ...
  • Public accounting
    Public accounting is an area of accounting in which the accountant offers expert service ...
  • Long-term investments
    Long-term investments are generally investments stocks and bonds of other companies that ...
  • Current liability
    A current liability is a debt that a company can reasonably expect to pay (1) from existing ...