Products reported a​ write-down loss of for one of its plant assets on ​31, . The asset is currently held for disposal. At ​31, ​, the fair value of the asset increased by . Can record a​ recovery? Prepare the journal entry to record the recovery if it is permitted. Determine whether can record the recovery. can cannot can record the recovery since the asset is held for disposal, but only up to the previously recognized write-down. because U. S. GAAP does not permit firms to reverse write-down losses on assets held for disposal. because it exceeds the prior period write-down loss. for the total increase in fair value since the asset is held for disposal. since the asset is held for disposal, but only up to the previously recognized write-down. ​Now, prepare the journal entry to record the recovery if it is permitted as of ​31, . ​(Record debits​ first, then credits. Exclude explanations from any journal entries. If no entry is​ required, enter​ "No entry​ required" on the first account line and leave the remaining cells blank. Check your spelling carefully and do not​ abbreviate.) Account December 31, 2019

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.