Asset Disposal Window
Follow the guidelines provided below to complete the Asset Disposal window.
To view this window, select Asset/Dispose from the menu bar. To view disposal information, select the Transactions tab of the disposed asset.
Items in this window
| Item | Notes |
|---|---|
| Disposal Date (Required Field) | Enter the date of the asset disposal in MM/DD/YYYY format. This is a required field. The system uses this date and the appropriate averaging convention to calculate gain or loss on the disposal. If you enter a date prior to the asset's current through date, the system recalculates depreciation as of the disposal date. This disposal date must be on or after the Beginning Date and after the Period Close Date, if any. |
| Disposal Method | Select the disposal method. The disposal method you select determines how the system treats the default gain or loss of the disposed asset. For a full description of each disposal method, see Disposal Methods. |
| Partial Disposal | Specify whether this disposal is a full disposal of the acquisition value or a partial disposal of the acquisition value. Select Yes to perform a partial disposal. The system displays the Partial Disposal window. |
| Cash Proceeds | Enter the dollar amount of all cash received plus the value of any debts or other liabilities assumed by the buyer. If the disposal is a like-kind exchange, also include the value of any property received that is not like-kind. |
| Non-Cash Proceeds | Enter the dollar value of any noncash items received. If the disposal is a like-kind exchange, include the value of any like-kind property received. |
| Expenses of Sale | Enter the dollar amount of direct expenses incurred in selling or otherwise disposing of the asset. |
| [Calculate] | Click this button to calculate the gain or loss on the disposal. |
| Asset Information | These fields display relevant information about the asset. |
| Disposal Calculations | These fields display the gain/loss calculations. |
| Gain/Loss | This field displays the realized gain or loss on the disposal after the calculation is complete. The disposal method determines the realized gain or loss. You can override the amount by entering your own figure. Precede a negative number with a negative sign; do not enclose a loss amount in parentheses. |
| Recognize? |
Specify the appropriate recognition choice. If you want the system to recognize a gain or loss (that is, report on it in the organization books), specify Yes. You can also specify Defer to defer the recognition until a later date. Defer causes the system to enable the Defer Date field below the Recognize field. Based on the disposal method you choose, the system automatically sets the Recognize field to the default. |
| Deferred Date |
The system enables this
field only if you specified Defer in the Recognize field. Enter the Note: The Deferred Date must be later than the Disposal Date. |
| [Worksheet] | Click this button at the bottom of the Asset Disposal window to view a detailed calculation of the gain or loss amount displayed. |