If the value of an asset that has been written down later increases, to what extent may the related gain be recognized?
A)up to the amount of the original loss
B)the entire amount of the gain may be recognized
C)none of the gain may be recognized
D)up to the fair market value of the related asset

Question

Quizplus · Accepted Answer

The gain may be recognized only up to the amount of the original loss, as per accounting standards, to prevent recognizing unrealized gains.

If the Value of an Asset That Has Been Written