[NinaSun]

In Year 2, the company decided to dispose of its book binding component and properly computed the impairment to its value at $100,000. The company also determined that the component would lose $75,000 throughout the Year 2 fiscal year and another $150,000 until the unit’s planned disposal in Year 3. The company accounted for the impairment, actual losses, and anticipated losses as a loss on disposal in Year 2.

This is a simulation, The question asks to make correction to I/S of each year and for B/S of year 3. The answer says there is no correction on Year 3 B/S, because the asset disposed before 12/31/Year 3. I do not understand the explanation. Can anyone explain that? I would appreciate if someone can provide journal entry to clarify. Thanks

AUD-74,75 11/2014
REG-80 04/2015
FAR-74, 91 11/2015
BEC-79 08/2015