Question: This investment had been purchased in 20X1 at a cost
This investment had been purchased in 20X1 at a cost of $ 23 per share. At the end of 20X1, the fair value was $ 24 per share. At the end of 20X2, the fair value was $ 28 per share. The investment was sold in 20X3 at $ 30 per share. No dividends were declared in any year. This is a FVTOCI investment. What would be included in other comprehensive income on the SCI, the equity reserve for holding gains on the SFP ( cumulative), and earnings, in each of 20X1, 20X2, and 20X3? Realized holding gains are transferred to retained earnings.
Answer to relevant QuestionsThis investment had been purchased in 20X1 at a cost of $ 21 per share. At the end of 20X1, the fair value was $ 26 per share. At the end of 20X2, the fair value was $ 29 per share. The investment was sold in 20X3 at $ 33 ...Under what circumstances is an investment reclassified from the AC classification to the FVTPL classification? Can an AC investment be classified as FVTOCI? Explain.On 30 June 20X2, King Limited purchased 10,000 shares of Prince Inc. for $ 12,000 plus $ 1,000 in commission. In 20X2, the company received a $ 500 of dividends, and the shares had a fair value of $ 16,000 at the end of the ...On 1 June 20X8, Ghana Company purchased $ 7,000,000 of Monaco Corporation 5.8% bonds, classified as an AC investment. The bonds pay semi- annual interest each 30 May and 30 November. The market interest rate was 6% on the ...Cudmore Ltd. had two FVTPL investments at the end of 20X4, disclosed on the SFP as follows:.:.By the end of 20X4, unrealized losses of $ 4,500 related to the Kelowna Ltd. shares and unre-alized gains of $ 9,600 related to ...
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