In May 20X7, Chengu Entity (CE) decided to consolidate its operating facilities into one office located in Xaimen, China. In order to do this, CE had to shut down one of its facilities located in Surabaya, Indonesia. The Indonesian location was vacated in September, 20X7. CE has 2 years remaining on its lease in Indonesia and the lease is only cancellable under a $40,000 penalty payment. The present value of Elite's remaining payments is $27,000. How does CE account for this event?

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The Answer of In May 20X7, Chengu Entity (CE) decided to consolidate its operating facilities into one office located in Xaimen, China. In order to do this, CE had to shut down one of its facilities located in Surabaya, Indonesia. The Indonesian location was vacated in September, 20X7. CE has 2 years remaining on its lease in Indonesia and the lease is only cancellable under a $40,000 penalty payment. The present value of Elite's remaining payments is $27,000. How does CE account for this event?

In May 20X7, Chengu Entity (CE) Decided to Consolidate Its