Increases in the recoverable value of a total disposal group are:
A)Recorded in net income.
B)Recorded in net income but are limited to the carrying value of the disposal group on the date it was designated as held-for-sale.
C)Ignored.
D)Credited to Retained Earnings.

Question

Quizplus · Accepted Answer

Increases in the recoverable value of a total disposal group are required to be recorded in net income but are limited to the carrying value of the disposal group on the date it was designated as held-for-sale. This is in accordance with the accounting standards for non-current assets held for sale and discontinued operations.

Increases in the Recoverable Value of a Total Disposal Group