When a fixed asset is sold or otherwise retired, cost or recorded value is removed from the property accounts and the accumulated allowance for depreciation or amortization for that asset is removed from the valuation reserve.

Gain or loss, measured by the difference between:

Book value (Cost less accumulated depreciation)

and

Proceeds from sale of asset or salvage

Removal or dismantling costs

Insurance proceeds

is posted to other non-operating revenue or other non-operating expense.