Accounting for IGCSE & O level - Accounting Procedures (Section 12 - No. 35)
What happens to the depreciation expense when an asset is disposed of before the end of its useful life?
Depreciation stops at the date of disposal.
Depreciation continues for the full useful life.
Depreciation expense is always higher.
Depreciation expense is unaffected.
Explanation
Depreciation is only recorded up to the date of disposal; it stops at the point the asset is sold or otherwise removed from use.
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