Whenever a plant asset is sold or otherwise disposed of, the first step is to bring the depreciation up to date.

Name: Whenever a plant asset is sold or otherwise disposed of, the first step is to bring the depreciation up to date.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the depreciation recorded for the asset needs to be adjusted to reflect the actual usage and wear and tear of the asset before it is sold or disposed of. This adjustment is made through a process called "depreciation recapture."

Whenever a Plant Asset Is Sold or Otherwise Disposed Of