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Plant assets can be disposed of by discarding, selling, or trading in for other assets. No matter how plant assets are disposed of, the book value of the asset must be removed from the account. When an asset becomes completely useless, it is taken of the books by debiting the Accumulated Depreciation account and crediting the Equipment account. In the event an asset is discarded before its estimated useful life, the loss must be debited to the Loss on Disposal of Plant Assets account.
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