Drabinski Ltd. decided on 1 July 20X3 to dispose of an asset group consisting of land, a building, and equipment. 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 1 July 20X3 are as follows:

On 31 December 20X3, the net recoverable amount of the group is reliably estimated to be $ 1,640,000. On 1 April 20X4, the asset group is sold for $ 1,700,000, net of costs to sell.

Required:
Prepare journal entries that are appropriate to record the informationabove.

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Estimated Recoverable Amount Cost 400,000 900,000 Carrying Value $ 400,000 1,500,000 400,000 $2.300,000 Land Building Equipment 420,000 900,000 300,000 2,700,000 400000 00001,620.000