Cal. Code Regs. tit. 2 § 1091.11
Current through Register 2024 Notice Reg. No. 41, October 11, 2024
When a fixed asset is sold or otherwise retired, cost or recorded value is removed from the property accounts. Except in the case of a non-depreciable asset or an entire property having a separately-identified depreciation allowance, gain or loss is not recognized. Rather, the allowance for depreciation account is charged for the difference between:
Recorded cost of the asset | and | Proceeds from sale of asset or salvage |
Removal or dismantling costs | Insurance proceeds |
In exceptional cases where gain or loss is recognized, it is credited or charged to non-operating revenue or expense.
Cal. Code Regs. Tit. 2, § 1091.11