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Plea_of_insanity
Lv 5
Plea_of_insanity asked in Business & FinanceOther - Business & Finance · 9 years ago

Should the disposal of fully depreciated fixed assets appear on a Statement of Cash Flows?

We disposed of some fixed assets that had been fully depreciated at the time of disposal. There was no cash transacted during the disposal. Should we include the disposal on our Statement of Cash Flows? If so, what would the line item be?

(Not homework. For work.)

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  • Don G
    Lv 7
    9 years ago
    Favorite Answer

    NO. Only Cash transactions are included in the Cash Flow Statement. A fully depreciated asset has a net book value of zero. The journal entry to dispose of such an asset, when no cash was received at disposition is simply DR Acc Deprec CR Asset (both for the same amount).

  • ?
    Lv 4
    4 years ago

    Fully Depreciated

    Source(s): https://shrinks.im/baA3R
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