Telecommunications

Network Decommissioning Cost

Recording the cost of removing and disposing of obsolete 2G/3G network equipment.

Account NameTypeDebit ($)Credit ($)
Accumulated Depreciation (2G Network)Contra-Asset (-)8,000,000.00-
Network Equipment (2G Cost)Asset (-)-10,000,000.00
Loss on Network DecommissioningExpense (+)2,000,000.00-

💡 Accountant's Note

Technology migrations require decommissioning legacy networks. If equipment is not fully depreciated at disposal, the net book value is recognized as a loss. Decommissioning costs (removal, disposal) are expensed.

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