Question

Her Company purchased 20,000 common shares (20%) of Him Inc. on January 1, Year 4, for $340,000. Additional information on Him for the three years ending December 31, Year 6, is as follows:
On December 31, Year 6, Her sold its investment in Him for $460,000.
Required:
(a) Compute the balance in the investment account at the end of Year 5, assuming that the investment is classified as one of the following:
(i) FVTPL
(ii) Investment in associate
(iii) FVTOCI
(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 one of the following:
(i) FVTPL
(ii) Investment in associate
(iii) FVTOCI
(c) What are the similarities and differences in your answers for the three parts of (b)?


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  • CreatedJune 08, 2015
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