When assets are disposed of through sale or abandonment, we record additional depreciation since the last adjustment was made.

Question

Quizplus · Accepted Answer

When assets are disposed of through sale or abandonment, we record additional depreciation since the last adjustment was made. This is known as depreciation on disposal, and it is necessary to properly account for the asset's use and value up until the point of disposal. Therefore, the statement is true.

When Assets Are Disposed of Through Sale or Abandonment, We