1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell

1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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Question

1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at:

A. Cost

B. The lower of “Cost” and “Fair value, less costs to sell’

C. The higher of “Cost” and “Fair value, less costs to sell’

D. Fair value, less costs to sell

2.) An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held for sale’, is recorded in:

A. Income from continuing operations

B. Equity

C. Income from discontinued operations

D. Secret

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