Hi, this is my first post and I am lost so bear with me!
We recently had an auction, at this auction we sold all sorts of old assets.
Among these are specific parts of a particular item.
I know what sort of entries I need to do for a truck we sold. But what if we sold the engine out of a vehicle, the engine itself is not an item of plant and as such we do not depreciate it on its own.
How do i estimate the written down value at sale of an item that forms a part of a larger asset?
Or in the case of the example how would I assess the written down value of the engine I sold out of the vehicle?
Thank you in advance!
We recently had an auction, at this auction we sold all sorts of old assets.
Among these are specific parts of a particular item.
I know what sort of entries I need to do for a truck we sold. But what if we sold the engine out of a vehicle, the engine itself is not an item of plant and as such we do not depreciate it on its own.
How do i estimate the written down value at sale of an item that forms a part of a larger asset?
Or in the case of the example how would I assess the written down value of the engine I sold out of the vehicle?
Thank you in advance!
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