INTERNATIONAL CORP. International Corp. (IC) is a large Canadian company that has operations around the world that are very diverse. In the past few years they have acquired a number of different companies in a variety of businesses. They have decided this year that it is time to reorganize their operations by antal gantating similar businesses. shutting down operations that are not efcient. and upgrading to new facilities. IC has a December 3 yearend. You. CPA. have recently been hired as an accounting policy adviser. Your rst job is to make a report for your manager identifying how the following events should be accounted for and the impact on the financial statements. After the reorganization is complete IC hopes to issue shares to the public. so they are concerned about any impact on EPS. In addition. IC has nancing from both Canadian and international banks with covenants based on a maximum debt to equity ratio. Your manager provided you with a summary from the last board of directors meeting of the following sales that have been approved as part of the reorganizing. The company is in the process of trying to nd a buyer for these assets. IC plans to sell its head ofce building and relocate to a larger new building that will meet the needs of their expanded organization. The existing building will continue to be used until February of next year when the new building is expected to be completed. . IC plans to sell one of their manufacturing facilities and discontinue that product line. as sales have been low the past few years. Any uncompleted customer orders will be transferred to the buyer. The sale is anticipated within the next year. . IC has been operating their own power generating facilities for the past few years. They have decided to exit that operation entirely. as the cost of generating power for their manufacturing facilities was higher than buying power front hydro. Tlte facility was only for [Us own use. not to sell to others. The sale requires government approval. which could take up to two years once a rm commitment has been made by a buyer. It is anticipated that a buyer will commit within the next year because the facility is being put up for sale at a deeply discounted price. . In November IC announced plans to sell their research facility and move into a new building that has the latest technology and is ready for immediate occupancy. Prior to the sale, renovations need to be completed on the research facility to bring the standards up to the current building code. It is anticipated that these renovations will be completed within the next three months. . IC stopped using one of their manufacturing facilities in October of this year due to low demand for the products. Operations have ceased until demand recovers, at which time IC Will resume production. The facility remains in workable condition. Provide the requested report.