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 $400,000 $400,000 $420,000 Building 2,700,000 1,500,000 900,000 Equipment 900,000 400,000 300,000 TOTAL $4,000,000 $2,300,000 $1,620,000

On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,640,000. On 1 April 20X4, the asset group is sold for $1,700,000, 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.)

1. Record the entry to write the depreciable assets down to their carrying value in their respective asset accounts

2. Record entry to reclassify the assets with loss or gain, if any.

3. Record the current value of assets.

4. Record the sale of the disposal group

Estimated Carrying Recoverable Cost Value Amount $ 400,000 $ 400,000 $ 420,000 2,700,000 1,500,000 900,000 900,000 400,000 300,000 Land Building Equipment $4,000,000 $2,300,000 $1,620,000