What should happen to equipment used in connection with a landfill by the time it closes?

The correct approach for equipment used in connection with a landfill by the time it closes is that it should be fully depreciated. This concept is rooted in accounting practices where assets are allocated their cost over their useful life through a process called depreciation.

When a landfill reaches the end of its operational life, the equipment associated with it should ideally have zero book value if it has been fully depreciated, reflecting its complete consumption in the operations of the landfill. This approach aligns with accounting standards that emphasize matching expenses to revenues during the period the asset was utilized, thus providing a clearer picture of the financial performance during the landfill's operation.

Maintaining equipment on the books at original cost would not provide an accurate representation of the financial state, as it would not consider the wear and tear or reduction in value over time. Revaluing to fair market value or selling off the equipment may be practical in terms of asset management but does not capture the necessary accounting treatment that should occur once the asset is no longer actively contributing to operations.