Joey Co. follows IFRS and has a December 31 year end. Joey purchased 200 common shares...
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Joey Co. follows IFRS and has a December 31 year end. Joey purchased 200 common shares of Chet Inc. on July 1, 2020 paying $11 per share. On October 1, 2020 Joey received a dividend of $0.40 per share from Ali. At December 31, 2020, Ali was trading at $13 per share. Joey is accounting for the investment using the FV-NI model. Required: 1) a) How is Joey's 2020 net income impacted by the above investment (+/-$)? b) How is Joey's 2020 other comprehensive income impacted by the investment (+/-$)? c) i) What is the value of the investment in Ali reported on Joey's statement of financial position at Dec 31, 2020? ii) Would the investment be reported as current or non-current? 2) If the investment was instead accounted for using the FV-OCI model a) How would Joey's 2020 net income be different ($)? b) How would the value of the investment in Ali be different on the stmt of financial position? ($) Joey Co. follows IFRS and has a December 31 year end. Joey purchased 200 common shares of Chet Inc. on July 1, 2020 paying $11 per share. On October 1, 2020 Joey received a dividend of $0.40 per share from Ali. At December 31, 2020, Ali was trading at $13 per share. Joey is accounting for the investment using the FV-NI model. Required: 1) a) How is Joey's 2020 net income impacted by the above investment (+/-$)? b) How is Joey's 2020 other comprehensive income impacted by the investment (+/-$)? c) i) What is the value of the investment in Ali reported on Joey's statement of financial position at Dec 31, 2020? ii) Would the investment be reported as current or non-current? 2) If the investment was instead accounted for using the FV-OCI model a) How would Joey's 2020 net income be different ($)? b) How would the value of the investment in Ali be different on the stmt of financial position? ($)
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1a Joeys 2020 net income is impacted by the investment as follows On July 1 2020 Joey paid 11 per sh... View the full answer
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