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What amount is reported for the investment

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Question: Sarasota Inc. acquired 15% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $866,400 for 45,600 shares, and is equal to 15% of Gregson's carrying amount. Gregson declared and paid a $0.85 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $491,000 for 2020. The fair value of Gregson's shares was $23 per share at December 31, 2020. Sarasota is a public company and applies IFRS.

Prepare the journal entries for Sarasota for 2019 and 2020, assuming that Sarasota cannot exercise significant influence over Gregson. The investment is accounted for using the FV-OCI model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

What amount is reported for the investment in Gregson shares on the December 31, 2020 statement of financial position under each of these methods in Fair Value Method and Equity Method?

Reference no: EM132764714

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