Accounting treatment of an asset
When an asset has been fully depreciated but is still in use, it should be recorded on the balance sheet at its net book value, which is the original cost of the asset minus the accumulated depreciation. The accumulated depreciation account will continue to increase as depreciation is charged each period, while the book value of the asset will remain the same. No further depreciation expense can be charged on the asset once it has been fully depreciated. The asset will remain on the balance sheet until it is disposed of or retired. Accounting treatment of an asset is necessary.
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