Reference no: EM133179138

Question - River Outdoor Supply Corporation (River Corp.) was organized on January 2, 2017. River Corp. issued 50,000 common shares for $250,000 on that date. The following investment transactions and events subsequently occurred

2017

Jan. 12 River Corp. acquired 12,000 shares of Tumer Ltd. at a cost of $250,000. This investment represented 24% of Turner's outstanding shares.

Mar. 31 Turner Lid. declared and paid a cash dividend of $1.00 per share.

Dec. 31 Turner Lid. announced that its profit for 2017 was $125,000.

2018

Aug. 15 Turner Lid. declared and paid a cash dividend of $0.80 per share.

Dec. 31 Turner Ltd. announced that its loss for 2018 was $95.000.

2019

Jan. 6 River Corp. sold all of its Investment in Turner Ltd. for $230,000 cash.

Assume that River Corp. has significant influence over Turner Ltd. with its 24% share.

Required -

1. Give the entries to record the preceding transactions in River Corp.'s books.

2. Calculate the carrying value per share of River Corp.'s investment as reflected in the investment account on January 1, 2019.

3. Calculate the change in River Corp.'s equity from January 12, 2017, through January 6, 2019, resulting from its investment in Turner Ltd.