Caley Inc. owns a building with a carrying amount of $1.5 million, as of January 1, 2014. On that date, Caley's management determined that the buildings location is no longer suitable for the company's operations and decided to dispose of the building by sale. Caley is preparing financial statements for the fiscal year ending December 31, 2014. As of that date, management had an authorized plan in place to sell the building, the building met all criteria for classification as held for sale, and the building's estimated fair value less costs to sell was $1 million. The building's depreciation expense for 2014 would amount to $200,000.
(a) Prepare the journal entry(ies) required on December 31, 2014, if any.
(b) Discuss how the building would be classified on the December 31, 2014 statement of financial position if Caley prepared financial statements in accordance with IFRS.
(c) Discuss how the building would be classified on the December 31, 2014 statement of financial position if Caley prepared financial statements in accordance with ASPE.