Banking
OREO Sold — Gain on Disposal
Selling a foreclosed commercial property above its carrying (book) value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Proceeds | Asset (+) | 135,000.00 | - |
| Accumulated Depreciation (OREO) | Contra-Asset (-) | 10,000.00 | - |
| OREO Asset (Cost) | Asset (-) | - | 120,000.00 |
| Gain on OREO Disposal | Revenue (+) | - | 25,000.00 |
💡 Accountant's Note
Gains on OREO disposal are recognized when the sale completes. Banks actively manage OREO portfolios to minimize carrying costs and avoid regulatory concentration limits on non-core assets.
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