Disposal Of Fixed Assets : Selling Fixed Assets ( calculate gain or loss)

There are 3 ways to dispose of the fixed assets :
1. Discard
2. Sell
3. Exchange or trade in
When the company want to sell the fixed assets, the company will calculate gain or loss .
the company will calculate book value to compare with cash received of disposal of fixed assets.
Book value = cost - accumulated depreciation
After that , we must compare book value with cash received :
1. cash received is bigger than book value = gain on disposal
2. book value is bigger than cash received = loss on disposal