3) Equity Investment transactions (4 marks) Riley Holdings, a public company, purchased the following investments on...

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3) Equity Investment transactions (4 marks) Riley Holdings, a public company, purchased the following investments on September 1, 2024: 8,000 common shares of Jasper Public Co., which trade on the TSX, were purchased at $10. Riley purchased the shares with the intention of selling them immediately if the value increases or if cash is needed for other business purposes. 7,500 common shares of Tasha Pet Grooming Ltd. were purchased for $75,000. This investment represents 30% of the common shares of Tasha. Riley will be able to elect two directors to Tasha's board of directors and so expects to influence the direction of the company. At December 31, 2024, Riley's year end, the following information about these investments is available: - Jasper Public Co. shares are trading on the TSX at $11.25. Tasha's reported $90,000 in net income for the period September 1 through December 31, 2024, and paid no dividends during this period. Instructions a) Record each of the purchases on September 1, 2024. b) Record any adjusting entries required on December 31, 2024, related to these investments. 3) Equity Investment transactions (4 marks) Riley Holdings, a public company, purchased the following investments on September 1, 2024: 8,000 common shares of Jasper Public Co., which trade on the TSX, were purchased at $10. Riley purchased the shares with the intention of selling them immediately if the value increases or if cash is needed for other business purposes. 7,500 common shares of Tasha Pet Grooming Ltd. were purchased for $75,000. This investment represents 30% of the common shares of Tasha. Riley will be able to elect two directors to Tasha's board of directors and so expects to influence the direction of the company. At December 31, 2024, Riley's year end, the following information about these investments is available: - Jasper Public Co. shares are trading on the TSX at $11.25. Tasha's reported $90,000 in net income for the period September 1 through December 31, 2024, and paid no dividends during this period. Instructions a) Record each of the purchases on September 1, 2024. b) Record any adjusting entries required on December 31, 2024, related to these investments.

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