Answered: key characteristic for…

Business

Accounting

key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount ofthe asset must

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 1DQ

See similar textbooks

Related questions

Q: The book value of a depreciable asset is A. The original cost of the asset. B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: The term that applies when an intangible asset is expensed over time rather than fully expensed at…

A: Any tangible fixed asset purchased has a fixed life throughout which it has to be used. Over the…

Q: An asset is impaired if: O a. The amount to be recovered through use (or sale) of the asset exceeds…

Q: Which of the following concepts is violated when measuring inventories at the lower of cost and net…

A: Solution: As per historical cost concept, in accounting value of an assets is recorded at original…

Q: The book value of an asset is equal to the asset's cost less accumulated depreciation.…

A: Book value means the value as per books of accounts. The assets are generally recorded at cost less…

Q: assets are amortized a. using straight-line method applied to the shorter of an intangible asset's…

A: Intangible Assets - It is an assets which are not in physical in nature. for example patent,…

Q: Which statement on property, plant and equipment (PPE) is true? * PPE items may include assets…

A: The question is multiple choice question and related to Propert, Plant and Equipment. Required…

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: What element must be present when determining if an asset is a depreciating asset? a. An asset…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…

Q: When an impairment loss occurs, the carrying amount of the asset should be reduced to its a) ©…

A: Impairment: It implies to an increase in the fixed asset's carrying value in relation to the price…

Q: Why is the cost of certain kinds of property not recoverable at all by way of de-preciation,…

A: Cost of some assets are not recoverable because of the main reason that these assets do not qualify…

Q: Which of the following types of interest cost incurred in connection with the purchase or…

A: The costs incurred to acquire an asset can be capitalised or expensed depending on the nature of…

Q: Intangible assets are initially recorded at a. expected future value. b. fair value. c. cost. d.…

A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: Under IAS 36 Impairment of Assets, impairment test for an individual asset requires that the…

A: IAS 36 provide for the impairment of assets and states that assets must not be carried in balance…

Q: In accordance with IAS 36 Impairment of Assets, which one of the following is an indicator that an…

A: Solution: In accordance with IAS 36 Impairment of Assets, "a decline in the asset’s market value, as…

Q: The sale of a depreciable asset resulting in a gain indicates that the proceeds from the sale were…

A: Depreciable assets are those fixed assets on which depreciation is charged over the years and net…

Q: According to IAS 16 Property, Plant and Equipment, which, if any, of the following statements about…

A: IAS 16 Property, Plant and Equipment it is an standard and this accounting treatment is totally…

Q: Which of the following best describes depreciation? A.ccounts for the market value of a physical…

A: Depreciation is an expense which is shown and recorded in the expense side of the income statement.

Q: Which statement on property, plant and equipment (PPE) is true? * a. PPE items may include…

A: The assets of the company will provide the future economic benefits for the company. If the company…

Q: The book value of an asset is defined as ____________________. a. Estimated fair market value b.…

A: Book Value of an asset is the measure of the historical cost of an asset decreased by the total…

Q: Which of the following best describes the higher of an asset's net selling price and its value in…

A: Asset's net selling price is the amount obtainable from the sale of assets less any disposal cost.…

Q: A loss on impairment of an intangible asset under IFRS is the asset's: a. carrying amount less the…

Q: A loss on disposal

A: The loss on disposal arose when the asset is sold for less than the book value of the asset. The…

Q: Under IFRS, an intangible asset is considered to be impaired if it carrying value is greater than…

A: According to IFRS 13 and Indian Accounting Standard (IAS) 36, an intangible asset is said to be…

Q: The term that applies when an intangible asset is expensed over time rather than fully expensed at…

A: This question tells about that applies when an intangible asset is expensed over time rather than…

Q: The historical cost principle requires that when assets are acquired, they be recorded at Select…

A: Historical cost principle Historical cost refers to the cost at the time of acquisition. Since…

Q: When an intangible asset is acquired by an exchange of assets, which of the following measures will…

A: Intangible assets are those assets which we can not see or touch. These assets can only be felt.

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: Noncurrent asset or disposal group is classified as "held for sale" when the asset is available for…

A: Non current assets is one of the type of assets which will be held by the business for longer period…

Q: I. IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each…

A: IAS 16 Property, plant, and equipment details the accounting treatment of most types of property,…

Q: When an asset is sold, the accumulated depreciation account for the asset must be closed off to the…

A: The Depreciation expense is charged as reduced on the Value of fixed assets with passage of time.

Q: of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the…

A: operating assets are the assets which are used in the day to day activities of the business. the…

Q: According to IAS 16 Property, Plant and Equipment, which, if any, of the following statements about…

A: International Accounting standard (IAS) represents the Property, Plant, and Equipment (PPE). The…

Q: In a replacement analysis, the market value of the currently owned asset a. does not impact the cash…

A: With the passage of the time, old assets are outdated and more cost is incurred to maintain. So, it…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A.…

A: Held for sale assets are those assets that are acquired for the purpose of sale in short period of…

Q: Which statement below regarding the accounting for intangible assets is correct O Patents are…

A: Analysis of opinions 1. Patents are amortized over the shorter of useful life or legal life…

Q: An intangible asset may be recorded: A. if acquired from an external party at a cost. B. if it is…

A: Answer - Correct Option is A. if acquired from an external party at a cost.

Q: One factor that is not considered in determining the useful life of an intangible asset is* Residual…

A: Hi Student Since there are multiple questions we will answer only first question. If you want…

Q: What is the effective life of an asset? a. The total period of ownership of the asset,…

A: The resources owned by the organization to generate revenues are referred to as the assets. They can…

Q: Which of the following factors is NOT considered in determining the useful life of an intangible…

A: Intangible assets are assets that can not be seen or touched. Their effect can only be felt like…

Q: Which of the following statements is false? A.For a self constructed asset, capitalized interest…

A: Solution The false statement is "The cost to build an addition to an existing building should be…

Q: Which of the following is most accurate in describing the measurement of assets and liabilities? a.…

A: Financial statements will provide accurate information about financial position of an organization.

Question

The key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount ofthe asset must _________________.

a Be lower than initial cost of the asset.

b Be higher than its net realizable value.

c Principally be recovered through continuing use.

d Principally be recovered through a sale transaction.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Explanation:

VIEW

Step 2 Answer:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The book value of an asset is equal to the: a. asset's market value less its historical cost b. book value relied on by secondary markets c. replacement cost of the asset d. asset's cost less accumulated depreciation
Which of the following best describes the higher of an asset's net selling price and its value in use? Select one: a. Recoverable amount b. Depreciable amount c. Revalued amount d. Carrying value
In which of the following situations would a cost incurred after an asset’s acquisition be capitalized? A.The useful life of the asset is increased. B.The amount of the expenditure must be immaterial. C.The expenditure is necessary to maintain the working order of the asset. D.There is no increase in the useful life of an asset.
which of the following statements in relation to the cost of the asset is true? A. all of the statements are true B. The cost includes cash equivalent paid C. The cost includes the fair value of any non monetary consideration given to acquire an asset D. The cost includes nonrefundable purchase taxes
The following terms are mismatched with its definitions. Match the terms to its correct definitions. Terms Definitions Carrying amount The higher of an asset's fair value less costs to sell and its value in use Cost The cost of an asset or other amount substituted for cost, less its residual value Depreciable amount The amount by which the carrying amount of an asset exceeds its recoverable amount Entity-specific value The amount at which an asset is recognised after deducting any accumulated depreciation and accumulated impairment losses Fair value The amount of cash or cash equivalents paid or the fair value of other consideration given to acquire an asset at the time of its acquisition or construction Recoverable amount The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Residual value The present value of the cash flows an entity expects to arise from the…
An entity that acquires an intangible asset may use the revaluation modelfor subsequent measurement only if A. The useful life of the intangible asset can be reliably determined.B. An active market exists for the intangible asset.C. The cost of the intangible asset can be measured reliably.D. The intangible asset is a monetary asset.
1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell 2.) An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held for sale’, is recorded in: A. Income from continuing operations B. Equity C. Income from discontinued operations D. Secret
Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.
(Multiple Choice Question) An impairment loss is recorded when capital asset's 1. net book value is higher than the amount it could likely be sold for 2. market value is higher than its accumulated amortization 3. market value is higher than its net book value 4. net book value is higher than its accumulated amortization
Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.
If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell