Gain on sale of equipment is a commonly used metric which measures the total income produced when an organization clears out and sells its existing equipment. It represents the additional capital that would not have been realized had the organization retained its equipment. This gain can be assessed by comparing the amount received from the sale against the original cost of the equipment, or against the current book value of the asset. The input and output of these calculations are important to consider when evaluating business investments and trends. Put simply, if an organization evaluates its assets and finds it can generate more cash from selling them than keeping them, then they may decide to go ahead with the sale. Gain on Sale of Equipment provides insight into how useful the asset has become in its current state, and how beneficial it could be elsewhere!