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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.
Problem 1: Does Joseph Inc. meet the criteria for reporting as an asset held for sale?
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