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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. 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 $$4\mathrm{.}5$ 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

$$4\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$)$:

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 $$4\mathrm{.}5$ million cash.

On $25$ February $20$X$2,$ after further negotiations, the Salamander$$s board accepted an enhanced Brazilian offer to buy the division for $$4\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 $ $910$ $ $820$ $ $740$

Property, plant, and equipment $($net$)4,4003,2003,400$

Current liabilities $(900)(900)(900)$

$ $4,410$ $ $3,120$ $ $3,240$

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

$13$ September to $31$ December $20$X$1450$

$1$ January to $31$ March $20$X$2(560)$

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