The first step in recording the disposal of a long-lived asset is to update its book value by recognizing depreciation expense for the period of time since the last depreciation adjustment was made.

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This statement is true. Before recording the disposal of a long-lived asset, its book value must be updated by recognizing depreciation expense for the period of time since the last depreciation adjustment was made. This is necessary to ensure that the asset is correctly valued on the company's books and to ensure that the correct gain or loss on disposal is recorded.

The First Step in Recording the Disposal of a Long-Lived