# Selling a fixed asset

> The van sold years from now: cost and accumulated depreciation leave together, and the difference from the price is a gain or a loss.

Source: https://lopifi.com/learn/fixed-assets-and-depreciation/selling-a-fixed-asset
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**How do you record the sale of a fixed asset?** The van sold years from now: cost and accumulated depreciation leave together, and the difference from the price is a gain or a loss.

**Scenario — A van sold for more than its book value.** Say Northwind sells the van after thirty months, at the end of February 2029, for $10,500. By then the schedule has charged $15,000, so the net book value is $9,000. The price beats it by $1,500: a [gain on disposal](https://lopifi.com/md/glossary/gain-or-loss-on-disposal).

**Wrong:** Dr Cash 10,500
   Cr 4000 Revenue 10,500

**Right:** Dr Cash 10,500
Dr 1590 Accumulated depreciation 15,000
   Cr 1500 Vehicles 24,000
   Cr 7100 Gain on sale 1,500

Booking the proceeds as revenue overstates sales and leaves a van on the balance sheet the company no longer owns.

## Where this page's rules come from

- [ASC 360-10-35-4](https://asc.fasb.org/360/tableOfContent) — Depreciation allocates cost; it does not measure value (codification)

## Read further

- https://lopifi.com/md/journal-entries/asset-disposal

- **Track:** [Accounting](https://lopifi.com/md/learn/accounting)
- **Part of:** [Fixed assets and depreciation](https://lopifi.com/md/learn/fixed-assets-and-depreciation) — 4 min
- **Terms taught:** [Gain or loss on disposal](https://lopifi.com/md/glossary/gain-or-loss-on-disposal), [Net book value](https://lopifi.com/md/glossary/net-book-value), [Accumulated depreciation](https://lopifi.com/md/glossary/accumulated-depreciation)
- **Previous:** [Depreciation methods](https://lopifi.com/md/learn/fixed-assets-and-depreciation/depreciation-methods)
- **Next:** [Inventory and cost of goods sold, Accounting · Lesson 17](https://lopifi.com/md/learn/inventory-and-cost-of-goods-sold)
- **The course:** https://lopifi.com/md/learn