Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. during 2020 a company was formed. the company inve

During 2020 a company was formed. The company invested in the following shares in 2020...

70.2K

Verified Solution

Question

Accounting

During 2020 a company was formed. The company invested in the following shares in 2020 :
In 2021, the company sold the investment in Dunder Inc. for $60,000 and paid transaction costs of
$1,200. The shares of Athlead Inc. were also sold for $100,000 and transaction fees amounted to $2,800.
The company also acquired the shares of Schrute Co. for $89,000, plus transaction fees of $2,200.
On December 31,2021, the fair values of the shares on hand were as follows:
Required:
(a) Prepare the journal entries in 2020 and 2021 assuming that
i) The investments are classified as FVTPL investments.
ii) The investments are classified as FVTOCI investments.
(b) Under assumption ii) calculate the balance in the AOCl account on December 31,2021 and
specify if it is a debit or credit balance.
(c) Under assumption ii) calculate the amount of OCI that will be reported in the Statement of
Comprehensive Income of 2021, and specify if it is a positive or negative amount.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

For Accounting firm, or a cabinets compay, or just in general, talk about the accoutning tool...

Basic Math
1.2K views

The length of a species of fish is to be represented as a function of the...

Biology
1.2K views

Section 29.1 A.) What distinguishes craniates from all other chordates? What distinguishes vertebrates from all other craniates? B.)...

Physics
1.2K views

An iron wire has a cross-sectional area of 5.70 ✕ 10−6 m2. Carry out steps (a)...

Biology
1.2K views

Which of the following events must occur before fertilization can happen?A. Double meiosisB. seed coat...

Calculus
1.2K views

The conjugate of a complex number a + bi is 25+ 3i. What is a...

Algebra
1.2K views

Simplify the expression 4 x 5 x X 2 O 4x 4x2 3x 10 O4x...

Accounting
1.2K views

Nantucket line marches and some of water and are noped to 3000 and 100 units...

Accounting
1.2K views

White Corporation has entered into an agreement to transfer accounts receivable to Murphy Company. Under...

Finance
1.2K views

8$) 9$) You have a $100,000 portfolio comprising 12 stocks. You trade each...

Finance
1.2K views

write recommendation from analysis focus on one alternative Alternatives Pebbles...

Accounting
1.2K views

Could you please come up with a recommendation for the problem in this case below?...