Which of the Following Statement Regarding Long-Term Operating Assets Classified

question 105

Multiple Choice

Which of the following statement regarding long-term operating assets classified as held for sale or disposal is true?

• A)Long-term operating assets classified as held for disposal are valued at historical cost.
• B)Companies may only depreciate long-term operating assets classified as held for sale or disposal on a straight-line basis.
• C)If the company writes down the asset in one period,the company can report an increase in value in the subsequent period if the fair value has materially increased.
• D)Long-term operating assets classified as held for disposal are valued at undepreciated cost.

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Definitions:

Jointly Control

The shared authority and responsibility over a particular task, project, or domain, often seen in partnerships or collaborative working environments.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to pursue a particular action.

Incentive

An incentive is a motivational factor or reward that encourages people to perform an action or adopt a behavior.

Room And Board

A combination of housing (room) and meals (board) typically provided as part of compensation or in a collegiate setting.