On August 31, 2019, Angela Corp. (AC) classified a surplus machine as held for sale. The equipment is available for immediate sale and is expected to sell within one year. Pertinent information follows:

• AC??s reports its financial results in accordance with IFRS. Its year-end is December 31.
• The surplus machine has historically been accounted for using the cost model.
• The net book value of the equipment at August 31, 2019, was $360,000 ($600,000 cost minus $240,000 accumulated depreciation). The equipment has been depreciated at $10,000 per month, which was last taken on August 31, 2019.
• The estimated costs of disposal are $15,000.
• Estimates of value follow:

• AC sold the equipment on January 15, 2020, for $368,000 cash less disposal costs of $19,000.

Required:Prepare the necessary journal entries to reflect the forgoing events.

Transcribed Image Text:

August 31, 2019 December 31, 2019 Fair value $370,000 $350,000 Value in use 380,000 365,000