Black Media Inc. owns and operates a large number of newspapers across Canada. On 1 October 20X5, the board of directors voted unanimously to dispose of one of those newspapers, The Daily Con. Black Media would continue to publish The Daily Con while a buyer was being sought. As Black Media was facing some financial problems, the board hoped for a quick sale. The newspaper was Black Media's sole holding in that city, and thus the newspaper's assets and liabilities could easily be transferred to a new owner. The board authorized an immediate search for possible buyers, and the company received several indications of interest by the end of 20X5. The net assets of The Dailv Con can be summarized as follows: Carrying Values, 30 September 20X5 Accumulated Book Cost Depreciation Value $ 10,000 45,000 Estimated Recoverable Value $ 10,000 40.000 Cash Accounts receivable Inventory Motor vehicles Land Building Equipment and furnishings Accounts payable 700 000 375.000 1250.000 225.000 400.000 1000.000 175.000 (60,000) 55,000 300.000 375.000 250.000 50,000 (60,000) $1.025.000 45.000 150.000 425.000 300.000 40.000 (60,000) $1.005.000 Page 144 Required: 1. Does the potential sale of The Daily Con qualify for treatment as a disposal group? Explain. 2. Give the appropriate entry or entries pertaining to The Daily Con on 1 October 20X5.

3. Assume that there is no change in recoverable amounts between 1 October and 31 December 20X5. Show how the vear-end 20X5 SFP and SCI will be affected by the decision to sell The Daily Con.

Black Media Inc. owns and operates a large number of newspapers across Canada. On 1 October 20X5, the board of directors voted unanimously to dispose of one of those newspapers, The Daily Con. Black Media would continue to publish The Daily Con while a buyer was being sought. As Black Media was facing some financial problems, the board hoped for a quick sale. The newspaper was Black Media's sole holding in that city, and thus the newspaper's assets and liabilities could easily be transferred to a new owner. The board authorized an immediate search for possible buyers, and the company received several indications of interest by the end of 20X5. The net assets of The Daily Con can be summarized as follows: Page 144 Required: 1. Does the potential sale of The Daily Con qualify for treatment as a disposal group? Explain. 2. Give the appropriate entry or entries pertaining to The Daily Con on 1 October 20X5