Alaska Corporation purchased 300 common shares of Burke Inc. for $23,400 and accounted for them using the

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Alaska Corporation purchased 300 common shares of Burke Inc. for $23,400 and accounted for them using the fair value through other comprehensive income model. During the year, Burke paid a cash dividend of $3.25 per share. At year end, Burke shares had a fair value of $74.50 per share. Prepare Alaskas journal entries to record
(a) The purchase of the investment,
(b) The dividends received, and
(c) The fair value adjustment.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Intermediate Accounting

ISBN: 978-0176509736

10th Canadian Edition, Volume 1

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

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