When equipment is sold for mare than net book value how is the transaction recorded? For less than? What is net book value?
When equipment is sold, the Equipment account is credited for the asset's historical cost. Its related Accumulated Depreciation account is debited for the amount representing prior usage. The Cash account is debited for the sales price. If the cash received exceeds the cost less accumulated depreciation (net book value), a Gain on Sale of Equipment is recorded for the difference. If the cash received is lower than the net book value, a Loss on Sale of Equipment is recorded for the difference. Net book value is the asset's historical cost less accumulated depreciation on the asset.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.