Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. In May 2017, Holiday announced the closing of its Financial Division, a decision that qualified for accounting as a discontinued operation. The Financial Division

image text in transcribed
1. In May 2017, Holiday announced the closing of its Financial Division, a decision that qualified for accounting as a discontinued operation. The Financial Division was officially closed on September 15, 2017. The equipment was disposed of on November 1, 2017 however the building will not be solduntil 2018and meets the requirements for a "held for sale" asset. Additional information related to the Financial Division is as follows: January 1 - May 1 May 1 - September tSovo $1,542,000 $1,457,000 $654,000 $826,000 Revenues Expenses January 1 Book Depreciation 2017 Selling Price Equipment Building Value $967,000 $3,150,000 $53,000 $278,000 $712,000 $3,732,000 Accumulated Depreciation on the Equipment prior to 2017 was $242,000, on the building accumulated depreciation prior to 2017 was $516,000. The revenues and expenses related to the Financial Division are included in the revenues and expenses on the trial balance. All depreciation was properly recorded for the building and equipment of the Financial Division. The disposal of the equipment and building have not been recorded. 1. In May 2017, Holiday announced the closing of its Financial Division, a decision that qualified for accounting as a discontinued operation. The Financial Division was officially closed on September 15, 2017. The equipment was disposed of on November 1, 2017 however the building will not be solduntil 2018and meets the requirements for a "held for sale" asset. Additional information related to the Financial Division is as follows: January 1 - May 1 May 1 - September tSovo $1,542,000 $1,457,000 $654,000 $826,000 Revenues Expenses January 1 Book Depreciation 2017 Selling Price Equipment Building Value $967,000 $3,150,000 $53,000 $278,000 $712,000 $3,732,000 Accumulated Depreciation on the Equipment prior to 2017 was $242,000, on the building accumulated depreciation prior to 2017 was $516,000. The revenues and expenses related to the Financial Division are included in the revenues and expenses on the trial balance. All depreciation was properly recorded for the building and equipment of the Financial Division. The disposal of the equipment and building have not been recorded

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions