Update depreciation through the disposal date before removing an asset. Compare proceeds with carrying amount, which is original cost less accumulated depreciation. Proceeds above carrying amount produce a gain; lower proceeds produce a loss. Remove both the original asset cost and all accumulated depreciation in the disposal entry.
A fully depreciated asset can still be used, and its cost remains in the ledger until disposal. Scrapping an asset with remaining book value creates a loss when there are no proceeds. A routine repair is an expense rather than a disposal or a new asset. In these exercises, any depreciation still needed is stated explicitly, so record that adjustment separately before the sale entry when requested.