binski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets’ carrying values and estimated recoverable amounts at 1 July 20X3 are as follows: Cost Carryi
Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets’ carrying values and estimated recoverable amounts at 1 July 20X3 are as follows:
| Cost | Carrying Value | Estimated Recoverable Amount | ||||||||
| Land | $ | 470,000 | $ | 470,000 | $ | 498,000 | ||||
| Building | 3,400,000 | 1,640,000 | 970,000 | |||||||
| Equipment | 1,040,000 | 470,000 | 357,000 | |||||||
| $ | 4,910,000 | $ | 2,580,000 | $ | 1,825,000 | |||||
On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,859,000. On 1 April 20X4, the asset group is sold for $1,919,000, net of costs to sell.
Prepare journal entries that are appropriate to record the information above. (If no entry is required for a transaction/event, select "No
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