On 30 April 20X2, Marc Company purchased 4,800 shares of Spencer Ltd. for $29 per share plus $480 in commission. In 20X2, the company received a $0.80 per share dividend, and the shares had a fair value of $24 per share at the end of the year. In 20X3, the dividend was $1.60 per share, and the fair value was $33 per share at the end of the year. In 20X4, the shares were sold for $32 per share less a $600 commission.

Required: 1. Show the amounts and accounts that would be reported in earnings and the statement of financial position for 20X2, 20X3, and 20X4 if the company uses the: (Negative amounts should be indicated by minus sign.)

a. Cost method.

b. FVTPL method. c. FVOCI-Equity method: realized amounts are transferred to retained earnings.

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Earnings Dividend revenue Fees and commissions Gain on sale Statement of financial position Investment OCI: Holding gain/(loss) 20X2 20X3 20X4 Earnings Dividend revenue Fees and commissions Holding gains (losses) Statement of financial position Investment OCI: Holding gain/(loss) 20X2 20X3 20X4 Earnings Dividend revenue Fees and commissions Holding gains (losses) Statement of financial position Investment OCI: Holding gain/(loss) Transfer to Retained Earnings 20X2 20X3 20X4 0 Earnings Dividend revenue Fees and commissions Gain on sale Statement of financial position Investment OCI: Holding gain/(loss) 20X2 20X3 20X4 Earnings Dividend revenue Fees and commissions Holding gains (losses) Statement of financial position Investment OCI: Holding gain/(loss) 20X2 20X3 20X4 Earnings Dividend revenue Fees and commissions Holding gains (losses) Statement of financial position Investment OCI: Holding gain/(loss) Transfer to Retained Earnings 20X2 20X3 20X4 0

Answer rating: 100% (QA)

Cost Method Earnings Dividend Revenue 480008 480016 Fees Commission Gain on Sale 4800 32600 139680 S... View the full answer