When disposing of equipment,Accumulated Depreciation is debited for the existing accumulated depreciation on the equipment.

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When equipment is disposed of, the Accumulated Depreciation account is debited for the existing accumulated depreciation on the equipment. This is because the accumulated depreciation represents the total amount of depreciation expense recognized over the life of the equipment up to the date of disposal. By debiting the Accumulated Depreciation account, the company effectively reduces the carrying value of the equipment to its original cost, which allows for the proper recognition of any gain or loss on disposal.

When Disposing of Equipment,Accumulated Depreciation Is Debited for the Existing