ACC 304 All Assignments ACC 304 All Assignments | Page 103

14) Woodson Company, a company who uses IFRS reporting standards,
has identified a group of plant assets for disposal. On January 1, 2014,
the carrying value of these assets was $14.5 million. The assets were
revalued to $13.5 million on January 5, 2014, when they were identified
as property for the disposal group. In addition, Woodson thinks that it
will cost $1.5 million to sell these assets. What carrying amount should
these assets reflect for year-end financial statements to be prepared on
January 10, 2014?
ACC 304 Week 3 Chapter 9 Quiz (All Possible
Questions)
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chapter-9-quiz-(all-possible-questions)
1. A company should abandon the historical cost principle when the
future utility of the inventory item falls below its original cost.
2. The lower-of-cost-or-market method is used for inventory
despite being less conservative than valuing inventory at market value.
3. The purpose of the “floor” in lower-of-cost-or-market
considerations is to avoid overstating inventory.