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Required: Prepare whatever journal entries are appropriate at 1 3 September 2 0 X 1 , 3 1 December 2 0 X 1 , 2
Required:
Prepare whatever journal entries are appropriate at September X December X February X March X and
Assessment Tool iFrame thousands, not millions or in whole Canadian dollar.
Journal entry worksheet
Record the entry to write down capital asset to fair value, Income tax and
record impairment loss.
Note: Enter debits before credits. Journal entry worksheet
Record the entry to reclassify assets and liabilities as held for sale.
Note: Enter debits before credits. Record the partial recovery in fair value less costs to sell for asset group,
partially off setting the operating loss of $
Note: Enter debits before credits. acceptance of an enhanced brazilian offer to buy the division.
Note: Enter debits before credits.Dornrd tho ontry fnr the approval given by the shareholders for the sale.
Assessment Tool iFrame
Note: Enter debits before credits.Salamander Inc. is a food processing company that operates divisions in three major lines of food products: cereals, frozen fish, and candy. On September X the Board of Directors voted to put the candy division up for sale. The candy divisions operating results had been declining for the past several years due to intense competition from large international players such as Nestl and Cadbury.
The Board hired the consulting firm Atelier LLP to conduct a search for potential buyers. The consulting fee was to be of the value of any sale transaction.
By December X Atelier had found a highly interested buyer for the candy division, and serious negotiations were underway. The buyer was a food conglomerate based in Brazil; it offered $ million cash.
On February X after further negotiations, the Salamanders board accepted an enhanced Brazilian offer to buy the division for $ million. The Salamander shareholders approved the sale on March X The transfer of ownership took place on March X
Salamanders income tax rate is Other information is as follows before tax, in thousands of dollars:
January X December X
Book Value Fair Value Fair Value
Candy divisions net assets:
Current assets $ $ $
Property, plant, and equipment net
Current liabilities
$ $ $
Net earnings loss of the candy division:
September to December X
January to March X
Required:
Prepare whatever journal entries are appropriate at September X December X February X March X and March XIf no entry is required for a transactionevent select No journal entry required" in the first account field. Enter your answers in thousands, not millions or in whole Canadian
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