Hide Away Storage, Inc. is a storage facility company. Hide Away Storage has a June 30^th fiscal year end and is privately held. Each identical storage facility has one building with 250 storage units. As of March 1, 2022 Hide Away Storage owned and operated 8 storage locations in Illinois. Each storage building is depreciated on a straight-line basis. Each building records $25,000 for depreciation expense each quarter.

Hide Away Storage made the decision on March 31, 2022 to close 2 underperforming locations. Hide Away Storage is in the process of accepting bids and hopes to complete the sales of these 2 locations as of July 31, 2022. In the June 30, 2022 Balance Sheet these 2 locations are correctly classified as "Held for Sale". The company also recorded $50,000 of depreciation expense for these 2 locations for the period April 1, 2022 - June 30, 2022.

Accounting Issue: Is Hide Away Storage permitted/required to recognize depreciation expense on the buildings that are classified as "Held for Sale" for the period of April 1, 2022 - June 30, 2022?

1. Codification Reference:

1. Your interpretation of the guidance: Should Hide Away Storage recognize depreciation expense on the buildings that are classified as "Held for Sale" for the period of April 1, 2022 - June 30, 2022?

1. Yes
2. No

1. If necessary, prepare a journal entry. If a journal entry is not required indicate N/A.

Date	Account Name	Debit	Credit