Homework answers / question archive / Glenn Village Facts: Frustrated by high property taxes, residents in the Village of Glenn voted to dissolve their village government, instead agreeing to receive similar services (formerly provided by the Village government) from their county government, Broward County

Glenn Village Facts: Frustrated by high property taxes, residents in the Village of Glenn voted to dissolve their village government, instead agreeing to receive similar services (formerly provided by the Village government) from their county government, Broward County

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Glenn Village Facts: Frustrated by high property taxes, residents in the Village of Glenn voted to dissolve their village government, instead agreeing to receive similar services (formerly provided by the Village government) from their county government, Broward County. No consideration must be paid by (or to) the county to effect this transfer. The effects of this transfer/dissolution will be that all village assets and liabilities (cash balances, buildings, infrastructure, and accounts payable) will become property and responsibility of the county, five employees will transfer to the Broward County offices, and two employees will be involuntarily terminated and given 3 months of severance pay. The two terminated employees were responsible for Glenn's parks and recreation department, which will be discontinued.

You have been asked to do a brief accounting issues memo to the Broward County government files describing the accounting implications of the Village of Glenn dissolution. In your memo, address the appropriate accounting for the transaction: merger, acquisition, or transfer of operations? Also, address how Broward County should recognize and measure the additional assets and liabilities, and describe—broadly—the accounting implications of the discontinuation of the parks and rec operations and the principle for recognizing the related employee terminations. In doing so, assume that the Village of Glenn has prepared financial statements as of the merger date.