Johnstone Timber regularly sells lumber mills and land that it holds when they are depreciated or depleted. These lumber mills and tracts of land are considered inventory.

Question

Quizplus · Accepted Answer

Lumber mills and tracts of land held by Johnstone Timber are considered fixed assets, not inventory, because they are long-term assets used in the operation of the business rather than goods to be sold in the ordinary course of business.

Johnstone Timber Regularly Sells Lumber Mills and Land That It