Question
Golf Inc. is a public company that has been in business since the 1980s. It owns and operates over 40 golf courses across Canada. It
Golf Inc. is a public company that has been in business since the 1980s. It owns and operates over 40 golf courses across Canada. It also owns and operates pro shops and dining facilities. On 1 November 20X4 GI announced it was going to sell three of its golf courses that were underperforming. They have had declining memberships over the past couple of years. GI is currently looking for a buyer. The asking prices are reasonable, and real estate agents expect that the courses will be sold before the spring of next year. The carrying amount of the land is $50,000 but the fair market value is $750,000. The equipment, for example golf carts, has a carrying amount of $600,000 and a fair market value of $450,000. GI has a December 31 year end.
How would GI account for the disposal of the three golf courses?
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