Final answer:
In accounting, when an asset has not been fully depreciated, the depreciation should be recorded before removing the asset from the accounting records.
Step-by-step explanation:
In accounting, when an asset has not been fully depreciated, the depreciation expense should be recorded before removing the asset from the accounting records. This is done to account for the reduction in value of the asset over time and to accurately reflect the asset's book value.
For example, let's say a company purchased a computer for $1,000 and estimated its useful life to be 5 years. Each year, the company would record a depreciation expense of $200 ($1,000 / 5 years) to reflect the reduction in value of the computer. If the company decides to remove the computer from its accounting records before the 5 years are up, it would need to record the remaining depreciation expense for the years that have not yet been accounted for.