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in this video were going to talk about how to account for the disposal of a fixed asset so fixed assets also are known as long-live dassit sand theyre basically assets that provide value for longer than one year for the firm so it could be property plant and equipment or it could be some type of intangible asset but usually its PPE that were thinking about when were talking about a disposal so to calculate the gain or loss on the disposal what were going to do is were going to take the proceeds from the sale so if we sell a piece of equipment how much cash or what do we receive whats the proceeds and then we subtract the net book value of the asset which is the original cost minus the accumulated depreciation and that gives us the gain or loss now I know thats a lot to process so I want to walk through an example I think itll make it a little bit easier for you to understand and Ill show you the journal entries and so forth so lets say January 1st 2018 you decide your fir
