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Show the b-s carrying amount for each of the two years

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Reference no: EM132781273

Consider the following data for intercorporate investments:

Year        Shares Purchased (Sold)       Price/Share      Price/Share

                                                                    Jan 1                 Dec 31

20x1                        200                             $80            $76

20x2                       (80)                             66               81

All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31).

                                                           20x1                    20x2

Investee earnings per share                 $8                 $9

Investee dividend per share                    3                3

Consider Trading, AFS and the Equity method for classifying investment

Required:

Problem A. Show the B/S carrying amount for each of the 2 years if the investment is classified as TRADING, AFS and EQUITY METHOD (Show calculations)

Problem B. Show the total income recognized for each of the 2 years if the investment is classified as TRADING, AFS and EQUITY METHOD

Reference no: EM132781273

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