Final answer:
On a balance sheet, equipment retired from use and held for sale is classified as an asset, more precisely under discontinued operations or other assets, depending on the company's operations and the timing of the intended sale.
Step-by-step explanation:
Equipment retired from use and held for sale on a balance sheet falls under the classification of assets. Specifically, such equipment would be classified as a non-current or long-term asset if the company plans to sell it within a year, as part of discontinued operations. In the case of a bank's balance sheet, this item would be considered part of the other assets category, unless the bank specializes in leasing or rental services, where such equipment might be a more central part of business operations. On a balance sheet, assets are items of value owned by the firm that can be used to produce something, just like cash or homes. However, the equipment's exact classification may vary based on how the business values these assets and the intended timing of their sale.