Question: Mallard Inc owns shares of Oakwood Corporation that are classified
Mallard Inc. owns shares of Oakwood Corporation that are classified as part of Mallard’s trading portfolio and accounted for using fair value through net income. At December 31, 2011, the securities were carried in Mallard’s accounting records at their cost of $850,000, which equalled their market value. On September 21, 2012, when the securities’ market value was $1.3 million, Mallard declared a property dividend that will result in the Oakwood securities being distributed on October 23, 2012, to shareholders of record on October 8, 2012. Prepare all necessary journal entries for the three dates.
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