Aurora Cosmetics Ltd., which reports under IFRS, acquired 40% of Diner Corporation's 30,000 common shares for $16 per share on January 1, 2012. On June 15, Diner paid a cash dividend of $70,000 and Aurora received its share of the dividend on the same day. On December 31, Diner reported profit of $150,000 for the year. At December 31, Diner's shares were trading at $20 per share.
Aurora Cosmetics also acquired 15% of the 200,000 common shares of Bell Fashion Ltd. for $28 per share on March 18, 2012. On June 30, Bell paid a $150,000 dividend. On December 31, Bell reported profit of $320,000 for the year. At December 31, Bell's shares were trading at $26 per share. Aurora intends to hold on to the Bell shares as a long- term investment for the dividend income.
Instructions
Record the above transactions for the year ended December 31, 2012.