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Chapter 17. Managing Assets > Selling Depreciable Assets

Selling Depreciable Assets

When you sell an asset that you have been depreciating, the sale of the asset must be recorded in such a way as to relieve both the asset account and the accumulated depreciation account of the value of the sold item.

Consider the following example: You purchased a piece of equipment for $3,500, and over the years you took deductions for $1,250 in depreciation expense relating to this piece of equipment. The book value of the asset is therefore $2,250 ($3,500–$1,250), and you sell the asset for $1,700. The following accounts are affected by the sale:


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