Question
Part 1:
Assume that one of the fixed assets listed in Apple’s balance sheet will be disposed of. Please provide the journal entry for the disposition of that asset. (You may have to look in the notes to the financial statements to see what the amount of accumulated depreciation is.) Next, assume that the company will sell the fixed asset for a gain of $20,000. Please provide the journal entry for the sale of that asset at a $20,000 gain.

Part 2:
There are times when the cost of the fixed assets of the business are exactly equal to the amount in the related accumulated depreciation account. Please let us know when an entry should be made to remove the cost and the accumulated depreciation from the accounts. Also, let us know if it is permissible to record additional depreciation on the assets if they are still useful to the business. Please let us know why or why not.


apple’s annual report
Apple Inc. CONSOLIDATED BALANCE SHEETS (in millions, except number of shares which are retected in thousands and par value) S
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Answer #1
Part 1)
Date Accounts Title & Descriptions Debit $ Credit $
30-Sep-17 Cash 53783
Accumulated Depreciation 41293
Property, Plant & equipment 75076
Gain in sale of Fixed Assets 20000
(Sale of fixed assets in 2017 resulting in gain of $20000)
Part 2)
When the cost of the fixed assets is exactly equal to the amount of the
related accumulated depreciation account, then entry towards the
retirement of the fixed assets is:
Date Accounts Title & Descriptions Debit $ Credit $
30-Sep-17 Accumulated Depreciation 75076
Property, Plant & equipment 75076
(Retirement of fixed assets in 2017)
To carry forward, the fully depreciated assets, it should be re-valued and
equally the unrealised income is added to the Retained Earnings. On having
additional value in fixed assets, we can continue depreciating the assets
further.
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