An entity classified a noncurrent asset accounted for under the cost model as held for sale at the current year-end. The entity decided at the end of the following year not to sell the asset but to continue to use it. The asset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amount B. The higher of carrying amount and recoverable amount C. The lower of carrying amount on the basis that it had never been classified as held for sale and recoverable amount D. The recoverable amount
An entity classified a noncurrent asset accounted for under the cost model as held for sale at the current year-end. The entity decided at the end of the following year not to sell the asset but to continue to use it. The asset should be measured at the end of the following year at A. The lower of carrying amount and recoverable amount B. The higher of carrying amount and recoverable amount C. The lower of carrying amount on the basis that it had never been classified as held for sale and recoverable amount D. The recoverable amount
Chapter8: Depreciation And Sale Of Business Property
Section: Chapter Questions
Problem 5MCQ: Which of the following statements with respect to the depreciation of property under MACRS is...
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An entity classified a noncurrent asset accounted for under the cost
model as held for sale at the current year-end. The entity decided at the
end of the following year not to sell the asset but to continue to use it. The
asset should be measured at the end of the following year at
A. The lower of carrying amount and recoverable amount
B. The higher of carrying amount and recoverable amount
C. The lower of carrying amount on the basis that it had never been classified as held for
sale and recoverable amount
D. The recoverable amount
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