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C11- 1.
Sense is manufacturer of engine. In Oct 2011, it paid $30 million to purchase a new subsidiary, Rosa. Rosa has two divisions: Lee and Bin. Sense decided to develop Lee but to sell Bin. Soon a buyer has been found for Bin and the sale will be finalized in Jan 2012 At acquisition date the net asset of Rosa as below:
Required: Please indicate how Bin will be treated on the financial statement of Sense.
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