GAIN ON DISPOSAL OF SUBSIDIARY
|12 Months Ended|
Sep. 30, 2020
|GAIN ON DISPOSAL OF SUBSIDIARY|
|GAIN ON DISPOSAL OF SUBSIDIARY||
NOTE 17 – GAIN ON DISPOSAL OF SUBSIDIARY
On September 30, 2020, the Company sold all its equity interests of Wenzhou Zhenglong Ecommerce Co. Ltd (Zhenglong) with the consideration of RMB 4,500,000. Zhenglong Ecommerce was incorporated on March 15, 2018 and was 90% owned by Zhejiang Zhengkang and 10% owned by a third-party individual. The operation of Zhenglong was at a very preliminary stage and had immaterial impact to the consolidated financials of the Company’s business. The Company considered ASC 810-10-40-5 to determine how to measure the gain on deconsolidation and recorded a gain of $536,612 on this disposal transaction.
The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef