Norris Enterprises, Inc. is a privately held storage facility. Each facility has one building with approximately 250 storage units. Prior to COVID-19, Norris owned and operated 6 locations. Each storage building was depreciated on a straight line basis. As a result of COVID-19, Norris decided to close 2 locations. Norris is in the process of accepting bids and hopes to complete the sales of these 2 locations as of June 30, 2021. In the March 31, 2021 financial statements these buildings are correctly classified as Held for Sale in the Balance Sheet. The CFO of Norris is unsure if they should continue to depreciate these locations while they are still owned by Norris.

Accounting Issue: Is Norris required to recognize depreciation expense on the buildings that are classified as Held for Sale?

Codification Reference: _____________________

Your interpretation of the guidance: Should Norris record depreciation expense on the buildings that are classified as Held for Sale ?

Answer: Yes or No ___________________