Question

On January 1, 2010, Aye buys 500 shares of Que, a public company, for $1.20 per share. On January 4, 2011, Aye buys 200 shares of Are, a public company for $0.84 per share. On September 1, 2012, Aye buys an additional 1,000 shares of Que for $1.65 per share. Aye sold 50 shares in Are on March 1, 2013 for $47.00 in total. Below are some relevant data regarding the transactions:
• Aye follows IFRS 9 to record its financial instruments and does not make an election.
• Income is earned evenly over the year and dividends are declared and paid at year end.
Required
Assume that no election is made.
(a) Calculate the effect on net income of Aye for each of the years 2010 to 2013.
(b) Calculate the balance in the investment account to be reflected on each December 31 from 2010 to 2013.
(c) Calculate the effect on net income for each of the years 2010 to 2013 assuming that Aye follows ASPE.
(d) Calculate the balance in the investment account to be reflected on each December 31 from 2010 to 2013 assuming that Aye follows ASPE.


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  • CreatedJune 09, 2015
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