1. Record the entry to write down capital asset to fair value, Income tax and record impairment loss.

2. Record the entry to reclassify assets and liabilities as held for sale.

3. Record the partial recovery in fair value less costs to sell for asset group, partially off setting the operating loss of $570.

4. Record the acceptance of an enhanced brazilian offer to buy the division.

5. Record the entry for the approval given by the shareholders for the sale. 6. Record the entry for the final sale.

Salamander Inc. is a food processing company that operates divisions in three major lines of food products: cereals, frozen fish, and candy. On 13 September 20X1, the Board of Directors voted to put the candy division up for sale. The candy division's operating results had been declining for the past several years due to intense competition from large international players such as Nestl and Cadbury. The Board hired the consulting firm Atelier LLP to conduct a search for potential buyers. The consulting fee was to be 5% of the value of any sale transaction. By 31 December 20X1, Atelier had found a highly interested buyer for the candy division, and serious negotiations were underway. The buyer was a food conglomerate based in Brazil; it offered $5.7 million cash. On 25 February 20X2, after further negotiations, the Salamander's board accepted an enhanced Brazilian offer to buy the division for $6.0 million. The Salamander shareholders approved the sale on 5 March 20x2. The transfer of ownership took place on 31 March 20X2. Salamander's income tax rate is 20%. Other information is as follows (before tax, in thousands of dollars): 13 September 20X1 Book Fair Value Value 31 December 20x1 Fair Value Candy division's net assets: Current assets Property, plant, and equipment (net) Current liabilities $1,010 5,600 (950) $ 5,660 $ 880 4,100 (950) $4,030 $ 860 4,300 (950) $ 4,210 Net earnings (loss) of the candy division: 13 September to 31 December 20x1 1 January to 31 March 20x2 570 (680) Salamander Inc. is a food processing company that operates divisions in three major lines of food products: cereals, frozen fish, and candy. On 13 September 20X1, the Board of Directors voted to put the candy division up for sale. The candy division's operating results had been declining for the past several years due to intense competition from large international players such as Nestl and Cadbury. The Board hired the consulting firm Atelier LLP to conduct a search for potential buyers. The consulting fee was to be 5% of the value of any sale transaction. By 31 December 20X1, Atelier had found a highly interested buyer for the candy division, and serious negotiations were underway. The buyer was a food conglomerate based in Brazil; it offered $5.7 million cash. On 25 February 20X2, after further negotiations, the Salamander's board accepted an enhanced Brazilian offer to buy the division for $6.0 million. The Salamander shareholders approved the sale on 5 March 20x2. The transfer of ownership took place on 31 March 20X2. Salamander's income tax rate is 20%. Other information is as follows (before tax, in thousands of dollars): 13 September 20X1 Book Fair Value Value 31 December 20x1 Fair Value Candy division's net assets: Current assets Property, plant, and equipment (net) Current liabilities $1,010 5,600 (950) $ 5,660 $ 880 4,100 (950) $4,030 $ 860 4,300 (950) $ 4,210 Net earnings (loss) of the candy division: 13 September to 31 December 20x1 1 January to 31 March 20x2 570 (680)