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hello and welcome back to another TLC tutoring company accounting lesson if you have not subscribed already please be sure to do so as we are going to be pumping out tons of accounting videos during the next few months and we are always open to suggestions about what we should create next so lets take a look at this problem that we have here today we are dealing with disposing and selling fixed assets so in this case we have a piece of equipment that was purchased on January 1st of the first year for $450,000 the equipment had a residual value of 50000 and is expected to have a useful life of five years and it also tells us that the company appreciates this equipment using the straight-line method so we have a couple scenarios the first one is going to be a disposal and the second one is going to be a sale so in this case we have equipment that is going to be disposed on January 2nd of the fourth years of notice this is the beginning of year four so if its the beginning of year four