If a Company Writes Down the Net Assets of a Discontinued

question 102

Multiple Choice

If a company writes down the net assets of a discontinued operation from original carrying value to a remeasurement of fair value in one year, and then in the next year the fair value changes ________.

• A) the company will recognize any subsequent loss or gain for the difference between new fair value and prior year remeasured fair value
• B) the company will recognize any subsequent loss but limit gains up to the original carrying value before remeasurement
• C) the company will recognize any subsequent loss but no gains for the difference between new fair value and prior year remeasured fair value
• D) the company cannot recognize any subsequent loss or gain

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Definitions:

Good Death

A concept involving a death that respects the wishes of the individual and provides peace, dignity, and closure.

Familiar Surroundings

Environments or settings that are well known to someone and in which they feel comfortable and secure.

Terminally Ill

A medical condition that is expected to lead to death within a relatively short time, often associated with a lack of curative treatment options.

Abandoned

The state of being left completely and permanently forsaken or deserted.