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SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS
3 Months Ended
Mar. 31, 2022
SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS  
NOTE 6. SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS

NOTE 6. SALE OF SUBSIDIARY, DECONSOLIDATION AND DISCONTINUED OPERATIONS

 

On August 9, 2021, the Company entered into a share purchase agreement with an individual to sell its 10,000 shares of its wholly owned subsidiary, Common Design Limited of Hong Kong, for a consideration of Ten Thousand Hong Kong Dollars (HK$10,000.00) or (CAD1,610.00). The 10,000 shares represent all of the issued and outstanding shares of Common Design Limited. The transaction was consummated on September 9, 2021.

 

The Company recorded a gain of $1,812 for the disposal of the subsidiary. A breakdown is as follows:

 

Proceeds received

 

 

 

 

$1,277

 

Carrying value of investment

 

 

 

 

 

-

 

Carrying value of accounts of subsidiary at time of disposal

 

 

 

 

 

 

 

Asset

 

$1,773

 

 

 

 

 

Liabilities

 

 

2,308

 

 

 

 

 

Net gain on elimination of net liabilities

 

 

 

 

 

 

535

 

Gain on disposal and deconsolidation

 

 

 

 

 

$1,812

 

 

As a result of the sale, operating results of Common Design Limited has been reclassified as discontinued operations.