The following transactions took place for Titanic Corporation, a public company that must adhere to...
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The following transactions took place for Titanic Corporation, a public company that must adhere to IFRS: 2019 Jan 1 Acquired 62,500 Iceberg Inc common shares, at $20 per share. At the time of the purchase, Iceberg had 250,000 common shares issued and outstanding. There was no acquisition differential! 2020 June 15 Iceberg Inc. declared and paid a cash dividend of $0.75 per share. November 20 Acquired an additional 25,000 of Iceberg Inc. shares, at $20.50 per share. December 15 Iceberg Inc. declared and paid a cash dividend of $0.75 per share. December 31 Iceberg Inc. reported net income of $520,000 for 2020. The fair value of Icebergs shares was $21 per share. Instructions: a) Prepare the journal entries for 2019 and 2020 for Titanic Corporation. (10 marks) b) What would Titanic report for this investment in Iceberg Inc. on the statement of financial position (balance sheet) as at December 31, 2020? (1 mark)
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