Her Company purchased 48,000 common shares (20%) of Him Inc. on January 1, Year 4,...

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Accounting

Her Company purchased 48,000 common shares (20%) of Him Inc. on January 1, Year 4, for $816,000. Additional information on Him for the three years ending December 31, Year 6, is as follows:

Year Net Income Dividends Paid Market Value per Share at December 31
Year 4 $480,000 $360,000 $18
Year 5 540,000 384,000 20
Year 6 576,000 420,000 23

On December 31, Year 6, Her sold its investment in Him for $1,104,000.

Required:

(a) Compute the balance in the investment account at the end of Year 5, assuming that the investment is classified as

(i) FVTPL

Balance in investment account $

(ii) Investment in associate

Balance in investment account $

(iii) FVTOCI

Balance in investment account $

(b) Calculate how much income will be reported in net income and other comprehensive income in each of Years 4, 5, and 6, and in total for the three years assuming that the investment is classified as (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.)

(i) FVTPL

Year 4 Year 5 Year 6 Total
Dividend income $ $ $ $
Unrealized gains
Gain on sale
Net income $ $ $ $
Total OCI

(ii) Investment in associate

Year 4 Year 5 Year 6 Total
Equity income $ $ $ $
Gain on sale
Net income $ $ $ $
Total OCI

(iii) FVTOCI

Year 4 Year 5 Year 6 Total
Dividend income $ $ $ $
Gain on sale
Net income $ $ $ $
Other comprehensive income
Unrealized gain $ $ $
Gain on sale
Total other comprehensive income
Comprehensive income $ $ $ $

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