2. What is the amount to be reported as the carrying value of the building held for sale as December 31, 2014?

Cost of building 4,000,000

Acc. Depreciation 1,600,000
Carrying amount - Dec. 31 2014 2,400,000

3. What is the amount of loss to be recognized by Blazer Company in its income statement as a result of reclassification?
Carrying amount 2,400,000
Fair value less cost to sell 1,850,000
Impairment loss 550,000

4. What amount of impairment is allocated to the PPE?

18,000,000
divide: 29,000,000
0.62068965517
multiply: 4,000,000
2,482,758.62

5. What amount of the impairment os allocated to the goodwill?

6. What amount of the impairment is allocated to the inventory?

10,000,000
divide: 29,000,000
0.34482758621
multiply: 4,000,000
1,379,310.34

7. Immediately after classification as held for sale, what amount should be presented as the carrying value of the disposal grou
Noncurrent asset for sale 29,000,000
Goodwill write off 6,000,000
Financial asset liability 4,000,000
Goodwill 6,000,000
PPE 18,000,000
Inventory 10,000,000
Financial asset 5,000,000

Impairment loss 4,000,000

Noncurrent asset held for sale 4,000,000
mber 31, 2014?

esult of reclassification?

ying value of the disposal group?

1. How much will be reported as loss from ordinary activities of the discontinued segment during 2014?
Revenue:
Jan 1-June 1 3,000,000
June 1 - Dec. 31 1,400,000 4,400,000

Expenses:
Jan. 1 - June 1 4,000,000
June 1 - Dec. 31 1,800,000 5,800,000

Impairment loss:
Carrying value of net assets 4,000,000
Recoverable amount 3,600,000 400,000

Serverance and relocation cost 200,000

loss -2,000,000
Tax savings (2,000,000*35%) 700000
Net -1,300,000