On September 1, year 2015, ABC Co. purchases 10,000 shares of XYZ Co. common stock for...

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On September 1, year 2015, ABC Co. purchases 10,000 shares of XYZ Co. common stock for their fair value. ABC classified this investment as trading securities. On April, year 2016, ABC sold all of its investment in XYZ for its fair value on that day. The following are the fair values per share of XYZ common stock. Date Fair value $ 30 September 1, year 2015 December 31, year 2015 April 1, year 2016 26 40 Required: Journal entry to record this investment at the date of investment, closing accounting books at December 31, 2015 and at the date of selling the trading securities. On September 1, year 2015, ABC Co. purchases 10,000 shares of XYZ Co. common stock for their fair value. ABC classified this investment as trading securities. On April, year 2016, ABC sold all of its investment in XYZ for its fair value on that day. The following are the fair values per share of XYZ common stock. Date Fair value $ 30 September 1, year 2015 December 31, year 2015 April 1, year 2016 26 40 Required: Journal entry to record this investment at the date of investment, closing accounting books at December 31, 2015 and at the date of selling the trading securities.

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As per IFRS all the equity securities should be intially recognized at fair value and the profit or ... View the full answer