Asset retirement costs are added to the cost of a depreciable asset.

Name: Asset retirement costs are added to the cost of a depreciable asset.
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Asset retirement costs are costs associated with removing a long-lived asset at the end of its useful life, such as dismantling, removing, and restoring the site. These costs are typically added to the cost of the depreciable asset and are depreciated over the asset's useful life.

Asset Retirement Costs Are Added to the Cost of a Depreciable