Sale of an asset that was previously disposed

USA Discussion in 'Technical Queries' started by Ian Unger, Dec 13, 2016.

  1. Ian Unger

    Ian Unger

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    Our remote IT team informed the finance department that some old laptops on the Fixed Asset register could be disposed in November of 2015, because they were going to be destroyed. The destruction was delayed and now they found a company that wants to buy these laptops. Would the funds received for these laptops be recorded as a gain/loss on sale of an asset even though they were sold in a different year than they were disposed?
     
    Ian Unger, Dec 13, 2016
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  2. Ian Unger

    CaesarSalad

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    I would record it as a gain. While you may have 'disposed' it last year it could also be thought of as a write-down of the asset to zero. Therefore, I would consider it an asset still on your books that has zero value and whatever you sell it for would be all gain. Granted, if you actually removed the gross book value and the A/D of the asset from your ledgers in 2015 then technically it's still not on your books, but from a net standpoint the difference is nil.
     
    CaesarSalad, Dec 13, 2016
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