When a company decides to discontinue an operation,it values the assets and liabilities of that operation at ________.
A)gross book value (historical cost)
B)net book value (historical cost less accumulated depreciation)
C)gross current value (fair value)
D)net current cost (fair value less selling costs)

Question

Quizplus · Accepted Answer

When a company discontinues an operation, it values the assets and liabilities at net current cost, which is the fair value less any selling costs, to reflect the amount that can be realized from their sale.

When a Company Decides to Discontinue an Operation,it Values the Assets