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What is the accounting treatment at acquisition

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Reference no: EM133137198

Question - During the first quarter of 2018, Berkshire Hathaway purchased 75 million shares of Apple, Inc.'s stock. For illustration purposes, assume that all shares were purchased on January 2, at the closing price of $170 per share. Apple's stock closed at $165 per share on March 29, the last trading day of fiscal quarter 1. Assume that Berkshire Hathaway sold all 75 million Apple shares at $185 per share on June 29, the last trading day of fiscal quarter 2. What is the accounting treatment at acquisition and both quarter ends under both the old and new rule for this passive equity investment?

Reference no: EM133137198

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