Practice prompt · Q:tangible-asset-acquisition-capitalization-and-resources/held-for-sale-routing-001

Route a proposed asset sale at the classification date

Distinguish management discussion from supported held for sale classification and later sale derecognition.

Updated Sep 10, 2026 Review due Nov 8, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

An executive email says Linden Peak “plans to sell” a machine next year. The packet lacks approval, availability, marketing, timing, price, and plan-change evidence. What is the appropriate current route?

Choose the best answer. A Continue the held-and-used route until the dated criteria are supported; do not stop depreciation or claim discontinued-operation presentation from the email alone. B Stop depreciation on the email date because management intends to sell. C Derecognize the machine immediately because a sale is probable. D Present the machine as a discontinued operation because every planned sale is a strategic shift.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: A

Choice A withholds remeasurement and presentation conclusions until the required dated evidence is supplied.