When a noncurrent asset is classified as held for sale a. depreciation ceases at the date it is classified as held for sale b. depreciation continues until the asset’s actual sale c. depreciation continues until its carrying value exceeds its fair value less cost to sell d. it is almost certain that the asset will be sold in a short period of time.

When a noncurrent asset is classified as held for sale a. depreciation ceases at the date it is classified as held for sale b. depreciation continues until the asset’s actual sale c. depreciation continues until its carrying value exceeds its fair value less cost to sell d. it is almost certain that the asset will be sold in a short period of time.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter5: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 1MC: LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show...

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A noncurrent asset that is to be abandoned should not be classified asheld for sale because A. The carrying amount is recovered principally through continuing use.B. It is difficult to valueC. It is unlikely that the noncurrent asset will be sold within 12 months.D. It is unlikely that there will be an active market for the noncurrent asset
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