Question

How do I record a 5 yr Horse asset died year two?

Horse purchased for 10K

SL depreciation for 5 years.

FIrst depreciation entry was 2k.

Died year two.

How do I record the ACCUM DEPR as the asset was not fully depreciated.

I have read that the death is recorded as a sale for ZERO.

Supposedly it is not a LOSS in other income.

Can't figure how to get the GJE in balance.

Credit the cost of horse, debit the accumulated depreciation. The difference is LOSS ON DISPOSAL (expense or other expense account).

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