Gains and Losses

The application calculates the realized gain or loss amount for all disposed assets. You can decide whether to recognize the gain or loss. This topic describes the gain or loss calculation.

Gain or Loss Calculation

Calculating the gain or loss on a disposed asset requires determining the net proceeds from the disposal and the asset's adjusted basis. The system then subtracts the adjusted basis from the net proceeds to arrive at the net gain or loss.

The system calculates net proceeds using the information on the Asset Disposal window as:

	cash proceeds
plus	noncash proceeds
minus	expenses of the sale.

The adjusted basis for the gain or loss calculation equals:

	the asset's depreciable basis
plus	the salvage value if it was subtracted in determining the depreciable basis
minus	total accumulated depreciation through the disposal date.