Noncurrent asset or disposal group is classified as "held for sale" when the asset is available for immediate sale and the sale is highly probable. For the sale to be highly probable, which of the following statements is incorrect? a. The asset must be actively marketed for sale at a reasonable price in relation to its current fair value b. Management must be committed to a plan to sell the asset. c. An active program to locate a buyer and complete the plan must have been initiated. d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as "held for sale".
Noncurrent asset or disposal group is classified as "held for sale" when the asset is available for immediate sale and the sale is highly probable. For the sale to be highly probable, which of the following statements is incorrect? a. The asset must be actively marketed for sale at a reasonable price in relation to its current fair value b. Management must be committed to a plan to sell the asset. c. An active program to locate a buyer and complete the plan must have been initiated. d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as "held for sale".
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Noncurrent asset or disposal group is classified as "held for sale" when the asset is available for immediate sale and the sale is highly probable. For the sale to be highly probable, which of the following statements is incorrect?
a. The asset must be actively marketed for sale at a reasonable price in relation to its current fair value
b. Management must be committed to a plan to sell the asset.
c. An active program to locate a buyer and complete the plan must have been initiated.
d. The sale is expected to qualify for recognition as a completed sale within two years from the date of classification of the asset as "held for sale".
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