1. LESSON 8-3 Disposing of Plant Assets
4/26/2017
LESSON 8-3
Disposing of Plant Assets
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2. DISCARDING A PLANT ASSET WITH NO BOOK VALUE
page 235
January 5, 20X6. Discarded storage cabinet: original cost, $275.00; total accumulated depreciation through December 31, 20X5, $ Memorandum No. 72.
1. Record entry to remove plant asset from accounts. 1
2. Write the date, amount, and type of disposal. 2
LESSON 8-3

3. DISCARDING A PLANT ASSET WITH A BOOK VALUE
page 236
June 30, 20X6. Discarded office table: original cost, $200.00; total accumulated depreciation through December 31, 20X5, $140.00; additional depreciation to be recorded through June 30, 20X6, $ Memorandum No. 92.
1. Record a partial year’s depreciation expense. 1
2. Record the partial year’s depreciation. 4
3. Write the date, amount, and type of disposal. 3
4. Record entry to remove plant asset from accounts. 2
LESSON 8-3

4. LESSON 8-3
4/26/2017
SELLING A PLANT ASSET
page 267
January 4, 20X6. Received cash from sale of fax machine, $185.00: original cost, $600.00; total accumulated depreciation through December 31, 20X5, $ Receipt No. 60. 3 1 2
1. Compute the gain or loss on the sale.
2. Write the date, amount, and type of disposal.
3. Record entry to remove plant asset from accounts.
LESSON 8-3
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5. LESSON 8-3
4/26/2017
TRADING A PLANT ASSET
page 238
June 27, 20X6. Paid cash, $850.00, plus old counter for new store counter: original cost of old counter, $1,000.00; total accumulated depreciation through June 27, 20X6, $ Memorandum No. 130 and Check No. 154.
1. Compute the original cost of the new plant asset. 4 1
2. Write the date and type of disposal and the disposal amount. 2 3
3. Complete section 1 for the new plant asset.
4. Record entry to remove old plant asset and add new plant asset.
LESSON 8-3
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6. SELLING LAND AND BUILDINGS
LESSON 8-3
4/26/2017
SELLING LAND AND BUILDINGS
page 239
January 2, 20X6. Fidelity Company sold land with a building for $97, cash; original cost of land, $25,000.00; original cost of building, $150,000.00; total accumulated depreciation on building through December 31, 20X5, $85, Receipt No. 105.
1. Compute the gain on sale of plant assets.
2. Write the date, type, and amount of disposal. 2
3. Record entry to remove plant assets from accounts. 3 1
LESSON 8-3
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7. CALCULATING THE GAIN ON SALE OF LAND AND BUILDINGS
page 240
LESSON 8-3