When a plant asset is disposed of, the business must
a. bring the depreciation up to date
b. ensure that the plant asset is obsolete or worn out
c. comply with the conservatism principle and record losses but not gains
d. immediately replace it

The correct answer is a) bring the depreciation up to date.

Explanation:

A plant asset is all those assets that the company acquires, whether machinery or office equipment; these assets be recorded at its cost and its useful life. And after its useful life has ended, the asset's amortization must be updated. And then replace that asset.

The amortization has as a function the reduction of debt through consecutive payments of either a fee or interest; this helps to be free of the debt when the end of the useful life of the asset arrives and to be able to replace it.

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