If a Company Writes Down the Net Assets of a Discontinued

question 73

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,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 limited 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:

Set of Data

A collection of related pieces of information or numerical values subject to analysis.

Mean

The central value of a numeric dataset, determined by summing all the numbers and dividing by the total number of values present.

Frequency Distribution

A statistical representation showing the number of occurrences of each distinct value in a set of data.

Median

The middle value of a data set, which separates the higher half from the lower half of the data set.