Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of...
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Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets carrying values and estimated recoverable amounts at 1 July 20X3 are as follows:
| Cost | Carrying Value | Estimated Recoverable Amount | ||||||||||
| Land | $ | 455,000 | $ | 455,000 | $ | 480,000 | ||||||
| Building | 3,250,000 | 1,610,000 | 955,000 | |||||||||
| Equipment | 1,010,000 | 455,000 | 345,000 | |||||||||
| $ | 4,715,000 | $ | 2,520,000 | $ | 1,780,000 | |||||||
On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $1,811,000. On 1 April 20X4, the asset group is sold for $1,871,000, net of costs to sell.
Prepare journal entries that are appropriate to record the information above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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