Final answer:
When retiring an asset, it is important to identify what became of the asset, updating the records to reflect its disposal and preserving the historical data.
Step-by-step explanation:
When retiring an asset, it's crucial to perform a series of steps to update the company’s record keeping and ensure compliance with accounting standards. The most correct answer to what is important when retiring an asset is B. Identify what became of the asset. You must document whether the asset was sold, exchanged, discarded, or if it's merely no longer in use. This often involves updating the asset's status in your accounting system, but you do not necessarily delete the asset from the system immediately, as historical records are valuable for financial reporting and tax purposes. Furthermore, the physical disposal of the asset must be handled in accordance to disposal policies, which may involve selling, recycling, or properly disposing of the asset.
Identify what became of the asset: It is crucial to determine what happened to the asset after retirement, whether it was sold, transferred, repurposed, or disposed of.
Dispose of the asset: If the asset is no longer needed or has reached the end of its useful life, proper disposal methods should be followed to ensure environmental sustainability and regulatory compliance.