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Selling A Fixed Asset Journal Entry

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?

Answers

Mike Pingree
Title: Staff Accountant
Company: Global Food Ingredient Co
(Staff Accountant, Global Food Ingredient Co) |

Incidental selling costs SHOULD be included.

Anonymous
(Senior Project Accountant) |

It would be a loss of $300.

NBV = $3000
Sale=$3000-$300=$2700
Loss=$300

Sara Laidlaw
Title: President
Company: Accounting Services Bureau Inc
LinkedIn Profile
(President, Accounting Services Bureau Inc) |

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?

Philipp Suchan
Title: Product Marketing Manager
Company: Intacct Corporation
LinkedIn Profile
(Product Marketing Manager, Intacct Corporation) |

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 accounting regulation around capitalizing selling costs but this example does not apply to this guidance.

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