Disposing of hardware item from current assets, is the reduction in assets posted to equity or special loss account?

Question

I'm disposing of an old laptop that is broken and completely unusable. Let's say it was purchased for $1000 before taxes, already been accounted for in Current Assets since the date of purchase, and properly amortized over the years under the Expenses:Amortization account, with cumulative amortization calculated as well. There is no sale transaction here and no money coming in as the laptop is just being scrapped.

Residual value at this point is less than $100 and should be posted to Expenses:Amortization, and the full price of the laptop would be amortized under Assets:Accumulated Amortization. However, I also need to remove the $1000 from Current Assets, but where do I post the corresponding entry: Equity or a special Loss on disposal of assets account? Otherwise, what would this entry be?

Answer 1

Do not take the $1000 dollars off of equity. The cost of the laptop has already been taken from equity in the form of reducing (retained) earnings through the Expenses:Amortization account. The $1000 in the Current Assets account is balanced by the $1000 in the Accumulated Amortization contra-account. They should be taken off together and result in no change in the balance of current assets.