When an asset is disposed of, the current period's depreciation expense account must be updated to the time of the disposal.

Question

Quizplus · Accepted Answer

This is true because when an asset is disposed of, its cost and accumulated depreciation up to the date of disposal must be removed from the books, and any gain or loss on the disposal must be recorded. Therefore, the current period's depreciation expense account must be updated to the time of the disposal to ensure that the correct amount of depreciation is recorded in that period.

When an Asset Is Disposed Of, the Current Period's Depreciation