The profit is the difference between the proceeds from the sale and the carrying amount shown on the company’s books. If the company had a building that it paid $1 million for, and after depreciating it down to $500,000, sold it for $800,000, the company would record a gain of $300,000 on the sale of the asset. Likewise, if the building sold for $400,000, the company would record a loss of $100,000.
