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    ccredille's Avatar
    ccredille Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 20, 2006, 06:01 PM
    Accumulated Depreciation Question
    Can anyone help me please? I have the following questions:

    If I sell a Business Vehicle, that has not fully depreciated, what journal entry/entries do I need to make to get it off my books? For example, if the Vehicle cost me $25,000, A/D was $18,000, and I sold it for $10,000? I'm new at this, but here is what I'm thinking.

    Dr. A/D 18,000
    Dr. Cash 10,000
    Cr. Gain on Sale 3,000 (25000-18000=7000)
    Cr. Cost of Vehicle 25,000

    Thank you
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Nov 21, 2006, 12:15 AM
    Correct.

    As for the Gain, that is just a plug number. But if you want to calculate it:

    Car 25,000 – AD 18,000 = Book Value of 7,000. You sold it for 10,000, therefore you have a 10,000-7,000 = $3,000 Gain
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