An entity decides to sell a machine. On the date it makes this decision and stops using it, classifying it as 'held for sale', what happens to depreciation?

Test yourself: pick an answer

• A)Depreciation continues until the actual date of sale.
• B)Depreciation is paused immediately upon classification as held for sale.
• C)The asset is immediately written down to zero.
• D)Depreciation is doubled to clear the balance quickly.