Recording Terminal Loss on Disposal of Assets
by Diane
(Surrey BC Canada)
Gain (Loss) On Sale of Assets
I am preparing the final corporate tax return after receiving Certificate of Dissolution.
Most of the undepreciated assets on Schedule 8 have been disposed of for no value (given away, donated to Sally Ann, etc.) and therefore have been put under terminal loss column.
In recording the transaction in the general ledger, what account would be used to show this loss?
Hi Diane,
I won't comment on whether it was appropriate to dispose of assets at no value rather than fair market value ... or the difference between book value and tax value.
Any gain or loss on your books would go to Gain (Loss) On Sale of Assets (Other Revenue / Expense Account on the Income Statement).
You may want to read the rules pertaining to Cancelling Your GST/HST Account as well.
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