At a board meeting in June 2020, Yes Co's directors made the decision to close down one of its factories by 30 September 2020 and market both the building and the plant for sale. The decision had been made public, was communicated to all affected parties and was fully implemented by 30 September 2020.The directors of Yes Co have provided the following information relating to the closure: • Of the factory's 250 employees, 50 will be retrained and deployed to other subsidiaries within the Yes group during the year ended 30 September 2020 at a cost of P125,000. • The remainder accepted redundancy at an average cost of P5,000 each. • The factory's plant had a carrying amount of P2.2 million, but is only expected to sell for P500,000, incurring P50,000 of selling costs. • The factory itself is expected to sell for a profit of P1.2 million. The company also leased a number of machines in the factory which have an
At a board meeting in June 2020, Yes Co's directors made the decision to close down one of its factories by 30 September 2020 and market both the building and the plant for sale. The decision had been made public, was communicated to all affected parties and was fully implemented by 30 September 2020.The directors of Yes Co have provided the following information relating to the closure: • Of the factory's 250 employees, 50 will be retrained and deployed to other subsidiaries within the Yes group during the year ended 30 September 2020 at a cost of P125,000. • The remainder accepted redundancy at an average cost of P5,000 each. • The factory's plant had a carrying amount of P2.2 million, but is only expected to sell for P500,000, incurring P50,000 of selling costs. • The factory itself is expected to sell for a profit of P1.2 million. The company also leased a number of machines in the factory which have an
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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