Selling a Depreciable Asset
Selling a depreciable asset works almost identically to selling an asset that you haven’t been depreciating. When you sell the asset, you need to back out the asset’s account balance. You also need to back out the asset’s accumulated depreciation (which is the only thing that’s different from selling an asset that you haven’t been depreciating). You need to record the cash (or whatever) that somebody pays you for the asset. Finally, you count as a gain or a loss any difference between what you sell the asset for and what its net-of-accumulated-depreciation (or book value) is.
To record the sale of this depreciable asset, you’d use the following journal entry: