In accordance with the acceptance of the donation of fixed assets to be disposed of.
Borrow: Fixed Assets - Fixed Assets
Credit: Non-Operating Income - Acceptance of Donation Income
Acceptance of donation of equipment recorded in the accounts, "Business Accounting System - Accounting and Accounting Statements" in the 2341 accounting account and accounting statements.
Fixed assets, intangible assets and other subjects, according to the determined value of the future income tax payable, cargo account, according to the determined value less the balance of the future income tax payable, credited to the capital surplus "account. When the enterprise uses, amortizes or disposes of the non-cash assets donated, the income tax payable in accordance with the regulations is credited to this account, and credited to the account of Taxes Payable - Income Tax Payable."
Expanded:
Donated physical assets may not only be fixed assets such as equipment, but also inventory such as raw materials. Fixed assets and inventory have distinctly different natures.
Inventory sold at a price lower than the price of the physical donation, the results of accounting treatment will certainly be a loss, while the fixed assets have been used to sell or liquidate the price is lower than the price of the physical donation, the results of the accounting treatment is not necessarily a loss, because the fixed assets have been depreciated, the valuation of fixed assets, including the original value of the net value.
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