Mallard Inc. owns shares of Oakwood Corporation that are classified as Mallards fair value through net income
Question:
Mallard Inc. owns shares of Oakwood Corporation that are classified as Mallard’s fair value through net income (FV-NI) investment portfolio and accounted for using the FV-NI model. At December 31, 2022, the securities were carried in Mallard’s accounting records at their cost of $850,000, which equalled their fair value. On September 21, 2023, when the securities’ fair value was $1.3 million, Mallard declared a property dividend that will result in the Oakwood securities being distributed on October 23, 2023, to shareholders of record on October 8, 2023. Prepare all necessary journal entries for the three dates.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy