Which of the following statements 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.

Question

Quizplus · Accepted Answer

When an asset is classified as held for sale, it is measured at the lower of its carrying amount or fair value less costs to sell. If the fair value increases in a subsequent period, the asset can be written up, but not above the original carrying amount before the write-down.

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