On this page
Worked-example setupScope and assumptions
- The ordinary vehicle sale transfers control to an unrelated noncustomer for fixed cash and has no disposal costs.
- The proposed equipment sale has only an executive email; the applicable held-for-sale criteria and fair value less cost to sell are not supplied.
- A separate machine was destroyed by fire; its carrying amount is supported, but insurer acceptance, recognized recovery, and settlement are not supplied.
- Tax, business-interruption insurance, litigation, discontinued-operation qualification, and replacement-asset accounting are outside the calculated sale anchor.
- Period
- Three separate Year 5 asset cards and dates
- Units
- US dollars
- Rounding
- Whole US dollars; no rounding required in the typed ordinary-sale anchor
Card 1: ordinary sale anchor
The vehicle's $50,000 gross cost less $35,000 accumulated depreciation yields a $15,000 carrying amount. Fixed cash proceeds are $18,000, so the verified gain is $3,000. Remove both gross cost and accumulated depreciation; report the investing cash receipt and keep the noncash gain out of operating cash under the bounded indirect-method bridge.
Card 2: proposed sale without criteria evidence
Linden Peak's executive email proposes selling another machine. The packet does not support approval, immediate availability, active marketing, probability, timing, price relationship, or plan-change likelihood. The current output is therefore a dated evidence request. Do not stop depreciation, apply a held-for-sale measurement, derecognize the asset, or label a discontinued operation from the email.
Card 3: fire loss and unsettled recovery
A different machine was destroyed. Its supported carrying amount is removed at the loss date under the scoped facts. Linden Peak filed an insurance claim, but the packet lacks insurer acceptance and recovery measurement evidence. Keep the asset loss, claim evaluation, recovery recognition, cash collection, and later replacement on separate timeline rows. Do not net an hoped-for recovery against the asset merely because both trace to the fire.
Verification boundary
The typed calculation verifies only the clean ordinary sale. The other two cards intentionally end with withheld conclusions. That is a successful result: it prevents one known carrying amount or one management statement from manufacturing classification, valuation, recovery, or presentation evidence.
Verified calculation · asset disposal
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- accumulated depreciation at disposal
- 35,000
- cash proceeds
- 18,000
- cost
- 50,000
- disposal costs
- 0
- reported gain or loss
- 3,000
Recomputed result
| Measure | Value |
|---|---|
| accumulated depreciation at disposal | 35,000 |
| carrying amount at disposal | 15,000 |
| cash proceeds | 18,000 |
| cost | 50,000 |
| disposal costs | 0 |
| expected gain or loss | 3,000 |
| gain or loss difference | 0 |
| net cash proceeds | 18,000 |
| reported gain or loss | 3,000 |