Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a building. 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 July 1.2023 are as follows: Land Building Cost $ 600 Carrying Value Estimated Recoverable Amount $ 600 $ 1,000 3,700 $4,300 2.500 2.400 $3.100 $3.400 On December 1, 2023, the asset group sold for $3,380, net of costs to sell. Required: Prepare journal entries that are appropriate to record the information above.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a
building. 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 July
1.2023 are as follows:
Land
Building
Cost
$ 600
Carrying Value
Estimated
Recoverable Amount
$ 600
$ 1,000
3,700
$4,300
2.500
2.400
$3.100
$3.400
On December 1, 2023, the asset group sold for $3,380, net of costs to sell.
Required: Prepare journal entries that are appropriate to record the information above.
Transcribed Image Text:Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a building. 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 July 1.2023 are as follows: Land Building Cost $ 600 Carrying Value Estimated Recoverable Amount $ 600 $ 1,000 3,700 $4,300 2.500 2.400 $3.100 $3.400 On December 1, 2023, the asset group sold for $3,380, net of costs to sell. Required: Prepare journal entries that are appropriate to record the information above.
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