How would company account for the disposal

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Problem 1: Company Ltd. owns and operates over 40 golf courses across Canada. It also owns and operates pro shops and dining facilities. On 1 November 2000 Company announced it was going to sell 3 of its golf courses that were underperforming. They have had declining memberships over the past couple of years. Company is currently looking for a buyer. The asking prices are reasonable, and real estate agents expect that the courses will be sold before the spring of next year. The carrying amount of the land is $200,000 but the fair market value is $750,000. The equipment has a carrying amount of $800,000 and a fair market value of $450,000. Company has a December 31 year end. How would Company account for the disposal of the 3 golf courses? Explain why it is accounted for this way.

Reference no: EM132955467

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