Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and abuilding. An active plan of disposal is being carried out, and sale is highly probable withinthe following year. The assets carrying values and estimated recoverable amounts at July1.2023 are as follows:LandBuildingCost$ 600Carrying ValueEstimatedRecoverable Amount$ 600$ 1,0003,700$4,3002.5002.400$3.100$3.400On December 1, 2023, the asset group sold for $3,380, net of costs to sell.Required: Prepare journal entries that are appropriate to record the information above.

d1. To record the impairment of the asset group on July 1, 2023:```Impairment Loss $ 300…

Answered: Broad Ltd. decided on July 1, 2023 to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 journal entry required" in the first account field.) Do not give answer in image
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