Reference no: EM132583473
At the end of Tanya Corporation's first year of business, it had the following equity investments which each represented a less than 20% interest :
Cost Fair Value
12/31/15 12/31/15
Deyan Inc. $150,800 $180,500
Chambers Education Inc. $308,000 $296,000
Nandini Airways $210,000 $205,000
On April 1, 2016, Tanya sold the investment in Nandini Airways for $300,000 and then on May 31, 2016 bought a 10% equity stake in Jet Air for $83,000. The Fair Values of Deyan, Chambers and Jet Air at December 31, 2016 were $200,000, $287,000 and $80,000 respectively.
Required:
Question 1: Prepare adjusting entry to record the investments at fair value at 12/31/15
Question 2: Prepare entry to record the sale on Nandini on April 1, 2016
Question 3: Prepare adjusting entry to record the investments at fair value at 12/31/16