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.