How do we account for the disposition of fixed assets? What are the differences in how the exchanges of assets are handled, pending on whether they are similar or dissimilar? What is the rationale for these differences? What is the impact to the companies' financial statements?© BrainMass Inc. brainmass.com June 3, 2020, 11:40 pm ad1c9bdddf
Disposal of fixed assets are accounted for in the books by removing the asset's total historical cost and corresponding total accumulated depreciation. Gains or losses are accounted for depending on how the asset was disposed.
If the asset ...
The solution answers how to account for disposition of fixed assets.