Gain or Loss on Disposal
1. If disposal price is higher than the carrying amount of the asset, gain on disposal is recognized.
2. If disposal price is lower than the carrying amount of the asset, loss on disposal is recognized.
3. Sale of property, plant and equipment:
Debit to cash and accumulated depreciation, credit to the PP&E asset.
2. If disposal price is lower than the carrying amount of the asset, loss on disposal is recognized.
3. Sale of property, plant and equipment:
Debit to cash and accumulated depreciation, credit to the PP&E asset.