Facts:$$Frustrated by high

property tax rates, residents in the Village of

Williamsville$$voted to dissolve their village government,

instead agreeing to receive similar services $($formerly provided by

the Village government$)$ from their county government, Erie County.

No consideration must be paid by $($or to$)$ the county to effect this

transfer. The effects of this transfer$/$dissolution will be that all

village assets and liabilities $($cash balances, buildings,

infrastructure, and accounts payable$)$ will become property and

responsibility of the county, six employees will transfer to the

Erie County district offices, and three employees will be

involuntarily terminated and given $3$ months of severance pay. The

three terminated employees were responsible for Williamsville$$s

animal control division, which will be discontinued.

Required:$$You

have been asked to write a brief accounting issues memo to the Erie

County government files describing the accounting implications of

the Williamsville dissolution. In your memo, address the

appropriate accounting for the transaction: merger, acquisition, or

transfer of operations? Also, address how Erie County should

recognizem and measure the additional assets and liabilities, and

describe$$broadly$$the accounting implications of the discontinuation

of the animal control operations and the principle

for$$recognition$$of the related employee terminations.

In$$doing so$,$ assume that the Village of Williamsville has

prepared financial statements as of the merger date. Feel free to

identify other issues that should be considered, as well.