When accumulated depreciation equals the asset's cost,the asset is fully depreciated.The entry to record the removal of the asset is called exchanging the equipment.

Question

Quizplus · Accepted Answer

When accumulated depreciation equals the asset's cost, the asset is fully depreciated and the entry to record the removal of the asset is called "disposal of equipment" or "sale of equipment" depending on how the asset was removed from the company's possession. "Exchanging the equipment" typically refers to trading in an old asset for a new one and should not be used to record the removal of a fully depreciated asset.

When Accumulated Depreciation Equals the Asset's Cost,the Asset Is Fully