Northlake Nordic Centre Inc. scraps a fully amortised snowmobile (Equipment: cost 14,000; accumulated amortization 14,000). Nothing is received. Record the retirement.
Northlake Nordic Centre Inc. scraps a fully amortised snowmobile (Equipment: cost 14,000; accumulated amortization 14,000). Nothing is received. Record the retirement.
Answer
Dr Accumulated Amortization – Equipment 14000; Cr Equipment 14000
Accounts - Accumulated Amortization – Equipment - Equipment - Loss on Disposal - Cash Carrying amount is zero, so there is no loss and no cash — but the cost and its contra must both leave the books: **Accumulated Amortization – Equipment** (debit) 14,000, **Equipment** (credit) 14,000. The traps are “no entry” (the books would still carry the machine) and a **Loss** of 14,000 (it was already fully expensed).
Hermanson Vol 1 ch 11 (retirements, casualty losses, exchanges — shapes adapted); Lyryx Intermediate FA Vol 1 §10.6–10.7 (the ASPE two-step); Dauderis & Annand §8.5 (IFRS — contrast only); verified-facts.md V7 (s.3831), V8 (s.3063) (concept map K13–K15)