The-definition.com

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

  • Management Auditing
    William P. Leonard defines it: “Management Auditing is a comprehensive ...
  • Cash payback technique
    Cash payback technique identifies the time period required to recover the cost of a capital ...
  • Petty cash fund
    Petty cash fund is a cash fund that is used to pay relatively small amounts such as the ...
  • Prepaid expenses
    Prepaid expenses or prepayments are companies record payments of expenses that will benefit ...
  • Under- or Overapplied overhead
    Underapplied overhead means that the overhead assigned to work in process is less than ...