If a company is discontinuing a division... division assets are 650,000 (acc. Depreciation is 300,000, therefore book value is 350,000). Fair value is 300,000 and costs to sell are 25,000... then sold for 400,000... buyer assumes liabilities of 100,000. If there are only 2 entries to make... are these correct?

To reclassify:
Held-for-sale assets 275,000
Loss on write-down (incl. costs to sell) 75,000
Acc. Depreciation 300,000
Division Assets 650,000

To sell:
Cash 400,000
Liabilities 100,000
Held-for-sale assets 275,000
Gain on Sale 200,000
Commission to sell payable 25,000

Basically... I'm not sure what to do with the liabilities... the transaction to get them off the balance sheet...

Any help would be greatly appreciated.

Thanks,
Kallie

Let me repost that... I thought the debit and credit columns would have stayed (brackets are credits)

To reclassify:
Held-for-sale assets 275,000
Loss on write-down (incl. costs to sell) 75,000
Acc. Depreciation 300,000
Division Assets (650,000)

To sell:
Cash 400,000
Liabilities 100,000
Held-for-sale assets (275,000)
Gain on Sale (200,000)
Commission to sell payable (25,000)