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All right, what happens at the end of the plant asset's life
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We're going to talk about the disposal side of it. So there are different ways that a plant asset can be disposed of
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You have what's called the discarding of it, meaning you're just getting rid of it
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You're throwing it away more or less. So this is scrapping the plant asset after the maxing out its useful life
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I'm not selling it. I'm just throwing it away. It's done. We also have selling it, which is I'm selling it to someone else
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This is trading the plant asset for cash. or the last one is exchanging it for another asset
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So I'm trading the asset for another asset that's not cash. Trading the plant asset for another plant asset
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These are dealt with in journal entries and accounting in three different ways
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In the next video, I'm gonna show you how to do discarding and selling. Exchanging can get a little tricky
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so that tends to be more of an upper level accounting class, so I'll show you that one later on
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in an upper level accounting video
