Question: Gunz Inc is a medium sized company involved in the manufacture

Gunz Inc. is a medium-sized company involved in the manufacture of paints in northern Ontario. It has been owned since inception by the Gunz family. However, the younger Gunz family members are showing no interest in carrying on the business. They have all gone to university and are pursuing their own interests. As such, Richard Gunz, president of Gunz Inc., has decided to sell the company. Toward that end, he has hired you to advise on the financial reporting as the sale price may be based on the net asset values.
Gunz has several investments on the statement of financial position and needs to ensure that they are in accordance with the appropriate GAAP.
The company has a policy of placing excess funds in shares so that it can earn a higher return than normally in the bank. They have various investments, which cost $120,000. They incurred transaction costs of $1,500 on the acquisitions that are currently included in the cost. The fair value of these investments as a portfolio is $150,000, although some specific investments have increased in value while others have decreased.

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  • CreatedJune 09, 2015
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