In 2010, the Top-slice Golf Company decided to augment theirvery successful line of golf clubs with a new line of professionalcaliber golf balls. The executives at Top-Slice were aware of thedifficulty of penetrating the golf ball market but feel, with theirname recognition and the possibility of receiving endorsements fromtour professionals that were playing Top-Slice clubs, chances forsuccess were substantial. The company purchased $175 million ofequipment and buildings in 2011 to begin production. The Top-Slicegolf ball has not performed up to expectations. The tourprofessionals did not care for the ball and did not endorse it.Significant improvements in golf balls by Callaway and Nike and thecontinued dominance of the Titleist ProV1 series made entering themarket very difficult.

On July 1, 2017, the Board of Directors voted to sell off thegolf ball manufacturing division. The company continued to operatethe facility at current levels of production until the sale of thedivision was completed on June 1, 2018. Top-Slice has a April 30year end and the controller and CEO are concerned about the properreporting for the disposal of the golf ball manufacturing divisionin the year-end April 30, 2018 financials. The company wants toissue the financial statements to the public by the end of June2018.   You are to draft a report to the controller andCEO identifying the issues and accounting choices associated withreporting the disposal and the authoritative guidance that existsto determine the proper manner of reporting the assets,liabilities, and results of operation for the division.