Marston Dairy Limited Marston Dairy Limited (Marston) is a dairy company operating in the Kawartha Region. The companys founder, Karen Marston, owns 70 percent of the shares. Three other private individuals, who have very little involvement in operating decisions, each own 10 percent. Marston produces milk, yogurt, ice cream, etc. that it sells through grocery stores and chains throughout Ontario. Over the years, labour and management have had a taxing relationship. Over the past ten years, the union representing Marstons employees have made significant wage concessions to avoid job losses. In the last contract negotiations, Marston and the union agreed that the union would have access to the companys financial statements. The upcoming negotiation will be the first time the union will receive the financial statements. You have been hired by the union representing Marstons employees to prepare a report on how to account for a number of controversial issues that arose on the unions review of Marstons December 31, 2021 financial statements and its preliminary discussions with Marstons management. The union will use your report in its assessment of Marstons financial position and performance, and its ability to pay higher wages and benefits to employees. Up until now, the company has followed ASPE, however, the union leader has asked whether IFRS would be more beneficial for the employees. The union leader has asked for your report to fully explain your recommendations, discuss arguments that Marstons management might use to counter your recommendations, and identify and discuss alternative treatments that Marston might present for the outstanding issues: 1. In November 2021, the company stopped using one of its manufacturing facilities. Marston plans to put the facility up for sale in early 2022 in order to capture the spring market. Marston has hired an agent to list the facility and has tentatively set a price of $4,100,000 less a 5% commission. Since the facility is no longer in use, the property has been classified as a current asset that is held for sale using the carrying value of $3,900,000 (Cost: $5,000,000, less accumulated depreciation $1,100,000).

Required:

-Assess the Situation - What is the issue

-GAAP/analysis - Conclude & Advise