Day: October 25, 2022

<strong>Early Retirement of Depreciable Assets</strong>

Early Retirement of Depreciable Assets

Early Retirement of Depreciable Assets


“How does the early retirement of depreciable assets occur and what are its consequences?”

Depreciable assets can be retired at any time for a number of reasons. However, if assets are retired early, then the organization will subtract the asset’s original value from both the plant-in-service and depreciation reserve, resulting in a net salvage value at the end. This is why we must keep track of Early Retirement of Depreciable Assets.