Let's continue with our example of the long-lived asset that cost $30,990. Again, assume you bought it on April 1, 2016 $30,990 Cost Ready for use date Estimated useful life Residual value (or salvage value) Sold Selling price April 1, 2016 6 years $3,990 July 31, 2020 12,000 Follow the steps and calculate the following 1. Calculate the depreciation to the date of disposal 2. Record the depreciation in the expanded accounting equation See the chart below 3. Determine the selling price: $12,000 4. Calculate the loss or the gain S. Record the disposal in the expanded accounting equation Complete the chart Year ended Depreciation expense 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-July-20 3,375 4,500 4,500 4,500 Accumulated depreciation 3,375 7,875 12,375 16,875 Book value cost acc.dear 27,615 23,115 18,615 14,115