Derecognize a delivery vehicle and trace the sale

Derive the amount leaving the balance sheet

$50,000 gross vehicle cost
− 35,000 related accumulated depreciation
= 15,000 carrying amount at sale

The asset subledger must tie both balances to the same vehicle and date. Using the accumulated depreciation for a different asset would produce correct-looking arithmetic and a false result.

Compare net proceeds with carrying amount

No disposal costs apply, so net proceeds equal the $18,000 cash receipt:

$18,000 net cash proceeds − $15,000 carrying amount
= $3,000 gain

The $18,000 is not the gain. It includes recovery of the $15,000 carrying amount plus a $3,000 excess.

Record all four paths

Debit   Cash                          $18,000
Debit   Accumulated Depreciation      35,000
Credit  Equipment                     50,000
Credit  Gain on Disposal               3,000

Debits and credits each total $53,000. Removing only Equipment would leave the related contra balance stranded; recording only Cash and Gain would leave the sold asset in Beacon's records.

Trace the statements

• Balance sheet: Cash rises $18,000; gross Equipment falls $50,000; Accumulated Depreciation falls $35,000; net assets rise $3,000 before closing the gain into equity.
• Income statement: the gain is $3,000, subject to the bounded presentation facts—not $18,000 revenue.
• Statement of cash flows: the full $18,000 cash receipt is an investing inflow in this simple property sale.
• Indirect operating reconciliation: subtract the $3,000 gain already included in net income. That removes its income effect from operating cash; it does not subtract the investing proceeds or reverse the sale.

Finance interpretation

The gain says proceeds exceeded a historical-cost carrying amount. It does not say the asset earned a positive economic return, the sale is repeatable, or Beacon can maintain capacity without replacement spending. A fuller review would compare original and replacement cost, age, maintenance, sale terms, taxes, and capital plans.