Let's say for example, I have a Fixed Asset that costs $15,000. The asset has accumulated depreciation $12,000, and I am selling it for $3000. It costs me $300 to advertise the fixed assets in order to sell it. What is my gain or loss ? Is it zero or a loss of $300?
Selling A Fixed Asset Journal Entry
Answers
Incidental selling costs SHOULD be included.
It would be a loss of $300.
NBV = $3000
Sale=$3000-$300=$2700
Loss=$300
In other words, have AP code the advertising bill to loss on sale of assets? Interesting. Do you code to a prepaid expense account until sold?
For financial reporting purposes it does not matter which GL line you code the expense to as as long as it rolls up into your Non-Operating Expenses. Also the advertising expense should only go into pre-paid if you pay before the advertising is displayed NOT before its sold. There is separate