Concept #1: Retirement of Fixed Assets (No Salvage Value)

Concept #2: Retirement of Fixed Assets (with Salvage Value)

Practice: A company using the double-declining-balance method for recording depreciation has a fully depreciated asset with a salvage value of $8,000. The asset originally cost the company $62,000. If the company retires the asset in the current year for no proceeds, the journal entry to record the disposal would include: