AccountingHub
A1

Measured against book value

Set the sale price and watch the gain or loss against book value.

Cost

$10,000

less accumulated depreciation $5,400

Book value

$4,600

Gain

$0

Selling a plant asset means removing both its cost and its accumulated depreciation from the books — but only after depreciation is recorded up to the sale date. What is left, , is what the sale price is measured against.

A price above book value is a gain; below it, a loss. Neither has anything to do with the asset's original cost — by the time it sells, most of that cost is already expensed.