If a plant asset is retired before it is fully depreciated and no salvage value is received?

If a plant asset is retired before it is fully depreciated and no salvage value is received, the remaining book value of the asset is recognized as a loss on the financial statements. This loss reflects the difference between the asset's carrying amount and its zero salvage value. The loss will affect the company's net income for the period in which the retirement occurs. Proper accounting treatment ensures that financial records accurately reflect the asset's disposal and its impact on the company's financial position.