Required:

Prepare whatever journal entries are appropriate at $13$ September $20$X$1,31$ December $20$X$1,25$ February $20$X$2,5$ March $20$X$2,$ 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 $$640.$

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 $13$ September $20$X$1,$ the Board of Directors voted to put the candy division up for sale. The candy division$$s operating results had been declining for the past several years due to intense competition from large international players such as Nestl$$ and Cadbury.

The Board hired the consulting firm Atelier LLP to conduct a search for potential buyers. The consulting fee was to be $5\%$ of the value of any sale transaction.

By $31$ December $20$X$1,$ 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 $$6\mathrm{.}4$ million cash.

On $25$ February $20$X$2,$ after further negotiations, the Salamander$$s board accepted an enhanced Brazilian offer to buy the division for $$6\mathrm{.}7$ million. The Salamander shareholders approved the sale on $5$ March $20$X$2.$ The transfer of ownership took place on $31$ March $20$X$2.$

Salamander$$s income tax rate is $20\%.$ Other information is as follows $($before tax, in thousands of dollars$)$:

$1$ January $20$X$131$ December $20$X$1$

Book Value Fair Value Fair Value

Candy division$$s net assets:

Current assets $ $1,080$ $ $1,020$ $ $940$

Property, plant, and equipment $($net$)6,3004,8005,000$

Current liabilities $(1,300)(1,300)(1,300)$

$ $6,080$ $ $4,520$ $ $4,640$

Net earnings $($loss$)$ of the candy division:

$13$ September to $31$ December $20$X$1640$

$1$ January to $31$ March $20$X$2(750)$

Required:

$1.$ Prepare whatever journal entries are appropriate at $13$ September $20$X$1,31$ December $20$X$1,25$ February $20$X$2,5$ March $20$X$2,$ and $31$ March $20$X$2.($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in thousands, not millions or in whole Canadian