When a fixed asset is sold or otherwise retired, cost or recorded value is removed from the property accounts. Except in the case of a non-depreciable asset or an entire property having a separately-identified depreciation allowance, gain or loss is not recognized. Rather, the allowance for depreciation account is charged for the difference between:

Recorded cost of the asset

and

Proceeds from sale of asset or salvage

Removal or dismantling costs

Insurance proceeds

In exceptional cases where gain or loss is recognized, it is credited or charged to non-operating revenue or expense.