Refer to the facts presented in problem P7-30. Data from P7-30 Laurel Ltd. has a December 31
Question:
Refer to the facts presented in problem P7-30.
Data from P7-30
Laurel Ltd. has a December 31 fiscal year-end. During 2017, the company purchased 15,000 shares of Pinegreen Company for $4.40 per share ($66,000 total), and sold these shares in 2020 for $5.60 per share. Pinegreen declared and paid dividends of $0.10, $0.20, and $0.30 per share at the end of 2017, 2018, and 2019, respectively. Pinegreen’s shares closed at $4.80, $4.20, and $5.20 at the end of 2017, 2018, and 2019, respectively.
Required:
Assume that Laurel irrevocably elects to record changes in the fair value of Pinegreen in OCI. Determine the amounts to be reported on Laurel’s balance sheet and statement of comprehensive income with respect to the company’s investment in Pinegreen Company for the four years 2017 to 2020.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
15000 shares of Pinetree with election to record fair value changes ...View the full answer
