Periodically clients discontinue a particular line of operation by shutting down or selling a line of business or a company,which usually occurs over at least several months.In these situations the client is to write down net assets to a best estimate of net realizable value and do which of the following?
A)recognize a loss.
B)recognize a gain.
C)recognize a loss or a gain.
D)not recognize any gain or loss.

Question

Quizplus · Accepted Answer

When a line of business is discontinued, the net assets are written down to their net realizable value, and any loss resulting from this write-down is recognized.

Periodically Clients Discontinue a Particular Line of Operation by Shutting