Reference no: EM132750917
Flounder Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $862,600 for 45,400 shares, and is equal to 10% of Gregson's carrying amount. Gregson declared and paid a $0.75 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $521,000 for 2020. The fair value of Gregson's shares was $20 per share at December 31, 2020. Flounder is a public company and applies IFRS.
Problem 1: Prepare the journal entries for Flounder for 2019 and 2020, assuming that Flounder cannot exercise significant influence over Gregson. The investment is accounted for using the FV-OCI model.
Problem 2: Prepare the journal entries for Flounder for 2019 and 2020, assuming that Flounder can exercise significant influence over Gregson.
Problem 3: 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?
Problem 4: Where is the investment reported on statement of financial position?
Problem 5: What amount is reported on Flounder's statement of comprehensive income in 2020 under each of these methods, and where are the amounts reported?
|
Is a credit transaction and explain
: the cashier's counter and paid with a post-dated check, dated February 15, 2020, with the approval of the store manager. Is this a credit transaction
|
|
Explain the four stages involved in business
: Use the emergence of the SpaceX program, launched by Elon Musk, to explain the four stages involved in business model disruption
|
|
Specify the additional benefits you will recommend
: Specify the additional benefits you will recommend. These recommendations should be strategically chosen and based on an analysis of KGW's employee demographics
|
|
What ethical dilemmas exist in proximity marketing
: What ethical dilemmas exist in proximity marketing? What can be done, both by commercial firms and by regulators, to overcome this ethical concern?
|
|
What amount reported on flounder statement of comprehensive
: What amount is reported on Flounder's statement of comprehensive income in 2020 under each of these methods, and where are the amounts reported?
|
|
How do you think new and innovative workplace initiatives
: How do you think new and innovative workplace initiatives such as flex-time scheduling, telecommuting, and the 'Results Only Work Environment
|
|
What bene?ts does ups derive from using orion
: What bene?ts does UPS derive from using ORION to help it make drivers' work more ef?cient? 2. What challenges does the system pose for drivers and their manager
|
|
Find cost allocated to the wholesale operation should amount
: Pound Industries' customer service department follows up on customer, Find costs allocated to the wholesale operation should amount t
|
|
Identify the potential performance appraisal rating errors
: Identify the potential performance appraisal rating errors from the below scenarios that have been evident at We MOVE this:
|