On January 1, 2021, the statement of financial position of X Incorporated shows total assets of 30 million, of which, one third accounts for current assets. On January 3, 2021, an equipment with a carrying value of 3 million was classified as held for sale. This equipment has a fair value less cost to sell of 2,000,000 on that date. On December 31, 2021, the equipment is still unsold but it still qualifies for recognition as held for sale. Depreciation expense for the year amounts to 1.2 million which includes the depreciation of 100,000 from the equipment which was classified as held for sale in January 3. The fair value less cost to sell of the equipment on December 31, 2021 was 2,100,000. On December 31, 2021, noncurrent assets would have a carrying value of: a. Answer not among the choices b. 15.9 million c. 18.8 million d. 16.8 million e. 14.9 million

On January 1, 2021, the statement of financial position of X Incorporated shows total assets of 30 million, of which, one third accounts for current assets. On January 3, 2021, an equipment with a carrying value of 3 million was classified as held for sale. This equipment has a fair value less cost to sell of 2,000,000 on that date. On December 31, 2021, the equipment is still unsold but it still qualifies for recognition as held for sale. Depreciation expense for the year amounts to 1.2 million which includes the depreciation of 100,000 from the equipment which was classified as held for sale in January 3. The fair value less cost to sell of the equipment on December 31, 2021 was 2,100,000. On December 31, 2021, noncurrent assets would have a carrying value of: a. Answer not among the choices b. 15.9 million c. 18.8 million d. 16.8 million e. 14.9 million

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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