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What is Asset Disposition

Asset Disposition: Getting rid of the asset or security via a direct sale or some other technique. Quite frequently you will observe insider trades report a "disposition" of some number of shares; this merely means that they sold them.

The depreciable assets are disposed of by selling, retiring, or exchanging them. Whenever depreciable asset is disposed of, an entry is prepared to recognize any unrecorded depreciation expenditure up to the date of the disposition, and then the asset's cost and accumulated depreciation are eliminated from the respective general ledger accounts. Any recognized losses or profits related with the disposition are recorded in a separate account and emerge in the part of the income statement named other income or expenditure, net.

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