At December 31, 2014, the equity investments of Wang Inc. that were accounted for using the fair

Question:

At December 31, 2014, the equity investments of Wang Inc. that were accounted for using the fair value through other comprehensive income model without recycling (application of IFRS 9) were as follows:

Because of a change in relationship with Ahn Inc., Wang Inc. sold its investment in Ahn for $153,300 on January 20, 2015. No other investments were acquired or sold during 2015; however, a dividend of $1,300 was received from Burnham Corp. in June. At December 31, 2015, the fair values of Burnham and Chi shares were $153,750 and $72,600, respectively.
Instructions
(a) Prepare the entry to adjust the portfolio of investments to fair value at December 31, 2014.
(b) Prepare the presentation of all investment-related accounts on the statement of financial position at December 31, 2014.
(c) Indicate what accounts and amounts would be reported on the statement of comprehensive income for the year ended December 31, 2014, and where each would be reported.
(d) Prepare the journal entries for the 2015 sale of the investment in Ahn Inc. and for the dividend received from Burnhan1 Corp.
(e) Prepare the journal entry required at December 31, 2015, to adjust the investments to fair value.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...