Can an asset be used after fully depreciated?
Henry Morales
Published Apr 06, 2026
An asset that is fully depreciated and continues to be used in the business will be reported on the balance sheet at its cost along with its accumulated depreciation. There will be no depreciation expense recorded after the asset is fully depreciated.
Should you write off assets that are fully depreciated?
A business doesn’t have to write off a fully depreciated asset because, for all intents and purposes, it has already written off that asset through accumulated depreciation. If the asset is still in service when it becomes fully depreciated, the company can leave it in service.
What is the net book value of a fully depreciated asset?
Net book value is the value at which a company carries an asset on its balance sheet. It is equal to the cost of the asset minus accumulated depreciation. When an asset is fully depreciated, it is worth nothing for accounting purposes, though the asset might actually have some scrap or minimal resale value.
How do I sell a fully depreciated asset?
How to record the disposal of assets
- No proceeds, fully depreciated. Debit all accumulated depreciation and credit the fixed asset.
- Loss on sale. Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
- Gain on sale.
What makes an asset a fully depreciated asset?
Fully depreciated assets are assets whose entire cost is written off or charged as an expense in multiple accounting periods as per the guidelines provided by ruling GAAP. It may so happen that an asset, after getting fully depreciated, may still be in active use. This happens due to incorrect charging of yearly depreciation.
How many entities simply forget the annual depreciation charge?
You would not believe how many entities simply forget it! They just book the annual depreciation charge based on the rates determined for some group of assets and that’s it. They do not revise the useful lives of their assets and as a result, they end up with using fully depreciated assets in the production process.
When is the accumulated depreciation account is debited?
When the fully depreciated asset is eventually disposed of, the accumulated depreciation account is debited and the asset account is credited in the amount of its original cost. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
How to dissolvng s Corp with assets / depreciation?
I have a client who is a sole owner of an S Corp. She has many assets (Equipment and Furniture) and is closing the company. She already filed the paperwork to dissolve with the state but I am unsure about how to handle the assets and loans payable. She will be filing a short year return. How do we show her payment for the loans payable?
