EXERCISE 5: Disposing of a Fixed Asset Example: Grant Industries has a piece of machinery that was purchased several years ago at a cost of $10,000. The machinery has no salvage value and has been fully depreciated. The company decides to discard the asset and remove it from the books. Review the completed example below. Notice that since the machinery already had a zero book value at the time of disposal, the entry to dispose of the asset includes a debit to Accum. Depreciation and a credit to the Machinery account. Accumulated Depreciation 10,000Bal 10,000 10,000 Machinery Bal. 10,000 Page 31