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:

National Woman's Party

A political movement in the early 20th century in the United States that fought for women's suffrage and equal rights through protests, lobbying, and legal challenges.

Alice Paul

A prominent American suffragist and activist who played a key role in the campaign for women’s suffrage, leading to the adoption of the 19th Amendment to the U.S. Constitution.

Fundamentalists

Individuals or groups who strictly adhere to the basic principles of any subject or discipline, often used in the context of religion to describe those who assert the literal interpretation and strict adherence to its doctrines.

Prohibition

The period from 1920 to 1933 in the United States when the manufacture, sale, and distribution of alcoholic beverages were illegal under the 18th Amendment.