On December 1, 2025 the board of Stratford Industrials plc committed to a plan to sell its fabrication unit, and at December 31, 2025 the unit met all IFRS 5 criteria to be classified as held for sale. The fair value less costs to sell of the disposal group is $26,000, so no write-down is required. The general ledger at December 31, 2025 shows the following balances, before separating out the disposal group.
| Account | Amount |
|---|
| Cash | $26,000 |
| Accounts Receivable | 41,000 |
| Inventory | 44,000 |
| Equipment (at cost) | 205,000 |
| Accumulated Depreciation - Equipment | 59,000 |
| Intangible Assets | 15,000 |
| Accounts Payable | 42,000 |
| Income Taxes Payable | 6,500 |
| Bonds Payable (due 2029) | 49,000 |
| Share Capital - Ordinary | 100,000 |
| Retained Earnings | 74,500 |
The disposal group consists of: equipment with a cost of $25,000 and accumulated depreciation of $7,000; inventories of $6,000; and trade payables of $9,000 that will transfer with the unit.
Required: Prepare the statement of financial position at December 31, 2025. Under IFRS 5, present the assets of the disposal group as a single line, Assets Classified as Held for Sale, shown as the final item within current assets, and the associated liabilities as Liabilities Directly Associated with Assets Held for Sale within current liabilities. All remaining captions must exclude the disposal group’s amounts. Show equipment at cost less accumulated depreciation.