Question: Can someone post the solution as to how each number is recorded? thanks very much Top Dollar Hardware operates a chain of hardware stores. Recent
Can someone post the solution as to how each number is recorded? thanks very much
Top Dollar Hardware operates a chain of hardware stores. Recent operations have been stable and profitable, resulting in a significant amount of cash inflows. During the past fiscal year ended December 31, the company made a number of investments, described below. (Click the icon to view the investment information.) Required Determine how Top Dollar should report the above investments in its financial statements. Include both effects on the balance sheet and the statement of comprehensive income. Complete the table below for each part. (Enter a net decrease in comprehensive income with a minus sign or parentheses.) Financial asset Total dollar value reported category on the Balance sheet a. FVPL $ 7,280,000 21,000 Total dollar value increase (decrease) to Statement of comprehensive income $ 768,000 $ (3,000) $ 420,000 b. FVPL $ C. Associate $ a. Top Dollar bought 80,000 shares of Hardware Mart, a supplier of equipment for construction and renovation. With in-depth knowledge of the hardware retailing business, Top Dollar's management believes that Hardware Mart's shares are undervalued and that the company could make a quick profit selling the shares within the next 12 months. Top Dollar purchased the shares at a price of $82 each, and received $0.60 per share of dividends during the year. The shares traded at $91 at the fiscal year-end. b. The company purchased 3,000 units of a mutual fund which cost $8 each. The mutual fund invests primarily in shares. At the end of the year, the units had a quoted market value of $7. c. At the beginning of the year, Top Dollar bought 30% of the common shares in Supply Depot, one of its smaller suppliers, $2 million. These shares had a fair value of $2.1 million at the end of the year. During the year, Supply Depot had profits of $1,400,000 and paid dividends of $120,000 2,384,000
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