On December 31, 2020, DOR Inc. announced it would close its western business line due to...

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On December 31, 2020, DOR Inc. announced it would close its western business line due to the pandemic. This closure would require the laying off employees, and selling out production machineries. The total estimated cost of laying off employees is 3,000,000. The dismantling and disposal cost of the machineries is 2,000,000 which were already accounted beforehand upon initial recognition. There are also inventories remaining at cost of 5,000,000 with net realizable value of 1,000,000 and unpaid suppliers and bills total of 3,500,000. Due to this closure, the expected net loss for the company will be 10,000,000. What is the amount of liability related to the closure of business line be reported as of December 31, 2020 in the statement of financial position? On December 31, 2020, DOR Inc. announced it would close its western business line due to the pandemic. This closure would require the laying off employees, and selling out production machineries. The total estimated cost of laying off employees is 3,000,000. The dismantling and disposal cost of the machineries is 2,000,000 which were already accounted beforehand upon initial recognition. There are also inventories remaining at cost of 5,000,000 with net realizable value of 1,000,000 and unpaid suppliers and bills total of 3,500,000. Due to this closure, the expected net loss for the company will be 10,000,000. What is the amount of liability related to the closure of business line be reported as of December 31, 2020 in the statement of financial position?

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