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Disposals of Plant Assets

Assets must be carried on a company's books at cost until the company no longer owns them. It does not matter whether the asset is being used or simply sitting in corner of the building gathering dust—the asset is counted on the balance sheet.

There are several options for disposing of assets: 

This lesson will review the first two options.

Regardless of the method of disposition, the first step in the process requires the determination of book value on the date of disposition.

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