ACCOUNTING FOR PROPERTY DISPOSITIONS - TRADE-IN OF PROPERTY - 8642

Agencies/departments which plan to trade in capital assets/property should first receive approval from the Department of General Services, Surplus Property and Reutilization program. The Surplus Property and Reutilization program will determine whether the property being traded-in should be acquired by another state agency/department. See SAM section 8640, Accounting for Property Dispositions.

The asset accounts and any related accumulated depreciation will be reversed from the agency’s/department’s general ledger and property register. Replacement property will be recorded at the acquisition cost which would be required to be paid had a trade-in not occurred.

See SAM section 8641, Sale of Property, for disposal by fund classification.