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Im Adam Selby and welcome to the County shooter where we create friendship videos so that you can learn about counts in todays video is about disposal and how we calculate it disposal means to sell or get rid of an asset there are two types of disposal and means are gain on disposal this is when an asset is sold for more than its net book value and you take the difference between the selling price and the net book value this would be recorded as an income in the income statement loss and disposed of this is when an asset is sold for less than the net book value and you take difference between a net book value and the selling price this record doesnt expense in the income statement this have been looking example Peter is a farmer and has bought a tractor for a hundred thousand pounds and its depreciation rate is twenty percent per year on a straight-line basis after two years Peter wants to sell each tractor to buy a new one he is soda tractor for seventy thousand pounds has he made
