Slide 10 - Explain how to determine the necessary JE for the elimination of a plant asset? (I want the 4 step process that will work for all 3 ways companies can dispose of assets. I will go over this in class.) Here are the four steps. 1. Journalize the depreciation on the asset for the current period to the date of disposal, e.g., if the asset is disposed on April 1, you will need to record depreciation expense from Jan 1 to March 31. This wil update your accumulated depreciation 2. Determine the book value of the asset being disposed 3. Is the asset being sold or just disposed with any cash proceeds. 4. Compare the book value of the asset being disposed with the cash proceeds being received to determine the gain or loss on disposal. You now have the basis to do your entry to dispose of the asset. When doing slide 10, I would do an example of how this works. Slide 10 - Explain how to determine the necessary JE for the elimination of a plant asset? (I want the 4 step process that will work for all 3 ways companies can dispose of assets. I will go over this in class.) Here are the four steps. 1. Journalize the depreciation on the asset for the current period to the date of disposal, e.g., if the asset is disposed on April 1, you will need to record depreciation expense from Jan 1 to March 31. This wil update your accumulated depreciation 2. Determine the book value of the asset being disposed 3. Is the asset being sold or just disposed with any cash proceeds. 4. Compare the book value of the asset being disposed with the cash proceeds being received to determine the gain or loss on disposal. You now have the basis to do your entry to dispose of the asset. When doing slide 10, I would do an example of how this works