Find an entity shall classify a noncurrent asset

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Problem 1: An entity shall classify a noncurrent asset or disposal group as held for sale when

Group of answer choices

Option 1: The carrying amount of the asset or disposal group is recovered through a sale transaction.

Option 2: The noncurrent asset or disposal group is idle or retired from active use.

Option 3: The noncurrent asset or disposal group is abandoned.

Option 4: The carrying amount of the asset or disposal group is recovered through continuing use.

Problem 2: If the fair value less cost of disposal is lower than the carrying amount of a noncurrent asset classified as held for sale, the difference is

Group of answer choices

Option 1: Debited to retained earnings.

Option 2: Charged to depreciation.

Option 3: Not accounted for.

Option 4: Accounted for as an impairment loss.

Reference no: EM132698074

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