Home Computer Case Essay examples

1503 Words Nov 21st, 2012 7 Pages
Case 04-3 : Home Computer, Inc. Kamontip Sakdivorapong ______________________________________________________________________________________________ Home computer, Inc. has 3 business segments: Computer manufacturing, printer manufacturing and retail store. (1) computer manufacturing: Home computer will discontinue its video monitor operations at Seattle plant and establish a replacement in Sacramento. Other component parts will continue to be manufactured at the Seattle facility. The company will scrap the equipment and “special interior building configuration assets” related to the video monitor operations. According from ASC 310-10-20 Glossary, Asset group refer as “An asset group is the unit of …show more content…
* b. The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups). (See Examples 5 through 7 [paragraphs 360-10-55-37 through 55-41], which illustrate when that criterion would be met.) 
 * c. An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated. 
 * d. The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year, except as permitted by paragraph 360-10-45-11. (See Example 8 [paragraph 360-10-55-43], which illustrates when that criterion would be met.) The term probable refers to a future sale that is likely to occur. 
 * e. The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value. The price at which a long-lived asset (disposal group) is being marketed is indicative of whether the entity currently has the intent and ability to sell the asset (disposal group). A market price that is reasonable in relation to fair value indicates that the asset (disposal group) is available for immediate sale, whereas a market price in excess of fair value indicates that the asset (disposal group) is not available for immediate

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