Depreciation must be recorded on the date of disposal for the amount of cost used since the last time depreciation was recorded. Needs 2 entries:1. Record Depreciation Expense & Accumulated Depreciation up to Disposal Date2. Record Disposal/Sale of AssetCost of Asset and any Accumulated Depreciation at disposal date must be removed from accounts.Difference between Resources Received on Disposal of Asset and Book Value = Gain (or Loss) reported on the Income Statement.dr. Cashdr. Accumulated Depreciationcr. Assetalso dr. Loss on Sale (if any)cr. Gain on Sale (if any) Compute Gain or Loss, depends on the sale, or if throwing away