Encore Industries owned investment securities with a book value of $45 million on August 12. At that
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Encore Industries owned investment securities with a book value of $45 million on August 12. At that time, Encore’s board of directors declared a property dividend consisting of these securities. The fair value of the securities was as follows:
Declaration – August 12 $ 58 million
Record date – September 1 62 million
Distribution date – September 20 60 million
What amount of gain should Encore recognize in earnings in connection with this property dividend?
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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