A gain is realized on the sale or retirement of assets when the proceeds receivedexceed the net book value of the assets sold. Similarly, a loss results when the proceeds are less than the net book value of the assets sold. Enter gains as a positive number and losses as a negative number. For historical periods, enter the before-tax gain or loss on the sale of assets as it should appear on the Income Statement. For forecast periods, enter the gain or (loss) on the sale of assets or use the default Freeform formula to enter the Proceeds from Sale of Assets.
Forecast Proceeds from Sale of Assets (Default Forecast Method)
Freeform formula:
(@input) Proceeds from Sale of Assets
- (v2170.03) Gross Retirements
+ (v2190.03) Accumulated Depreciation on Retirements
= (v1170.00) Gain on Sale of Assets
The sale or retirement of assets also affects the Balance Sheet and the Cash Flow Statement. The Balance Sheet reflects the reduction in Gross Fixed Assets (v2170) and Accumulated Depreciation (v2190) due to the sale of assets. The Cash Flow Statement contains Proceeds from Sale of Assets (v4000) with the tax on the gain of sale of assets included in Total Taxes on Operations (v3280).
The Funds Flow statement shows the Gain on Sale of Assets as a source of funds.