Bridgeport Corporation made the following purchases of investments during 2020, the first year in which...
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Bridgeport Corporation made the following purchases of investments during 2020, the first year in which Bridgeport invested in equity securities: 1. On January 15, purchased 9,540 shares of Nirmala Corp.s common shares at $35.50 per share plus commission of $2,100. 2. On April 1, purchased 5,300 shares of Oxana Corp.s common shares at $55 per share plus commission of $3,572. 3. On September 10, purchased 7,420 shares of WTA Corp.s preferred shares at $28.40 per share plus commission of $3,085. On May 20, 2020, Bridgeport sold 3,180 of the Nirmala common shares at a market price of $37 per share less brokerage commissions of $3,021. The year-end fair values per share were as follows: Nirmala $32, Oxana $58, and WTA $30. The chief accountant of Bridgeport tells you that Bridgeport Corporation holds these investments with the intention of selling them in order to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Assume that Bridgeport Corporation follows IFRS 9. Prepare the journal entry for the sale of the 3,180 Nirmala shares on May 2020
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