Plant Assets: Plant assets refer to the fixed assets having a useful life of more than a year, which is acquired by a company to be used in its business activities, for generating revenue. Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations: Disposal with no gain no loss : When the asset is disposed with no consideration received. Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation ). Disposal with loss: When the asset is disposed for less than its book value. To record: the journal entry to accumulated depreciation for the equipment

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Chapter 9, Problem 9.9BE

(a)

To determine

Plant Assets: Plant assets refer to the fixed assets having a useful life of more than a year, which is acquired by a company to be used in its business activities, for generating revenue.

Disposal of Assets: Disposal is an activity of selling the worn-out assets that is no longer in need for the business, in return of some consideration. Disposal may be made in any of the following situations:

Disposal with no gain no loss: When the asset is disposed with no consideration received.

Disposal with gain: When the asset is disposed for more than its book value (original cost less accumulated depreciation).

Disposal with loss: When the asset is disposed for less than its book value.

To record: the journal entry to accumulated depreciation for the equipment

(b)

To determine

To record: the journal entry to record depreciation expenses & disposal of equipment.

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