Joseph Inc., a manufacturer of automotive parts, has equipment
with a cost of $2,000,000. As of June 30, Joseph Inc. is no longer
using this equipment and has now hired a broker in attempt to sell
the equipment. The agent has indicated that she expects the sale to
occur within the next eight to nine months. The asset has been
listed for $1,200,000 and the agent expects 2% commission on the
sale. The asset has a carrying value of $1,400,000.
Does Joseph Inc. meet the criteria for reporting as an asset held
for sale?
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