Niger Corp. provided you with the following information about its investment in Fahad Corp. shares purchased in May 2014 and accounted for using the FV-OCI method:
Cost ...................... $39,900
Fair value, December 31, 2014 .......... $41,750
Fair value, December 31, 2015 .......... $32,200
Fair value, December 31, 2016 .......... $36,400
Instructions
(a) Prepare the adjusting journal entries needed on December 31,2014,2015, and 2016.
(b) Determine the balance in accumulated other comprehensive income on the statement of financial position on each of December 31, 2014, 2015, and 2016.
(c) Assume Niger sold its investment in Fahad Corp. on February 13, 2017, for$38,000. Prepare the journal entry(ies) needed on this date if (1) the FV-OCI method required recycling, and (2) the FV-OCI method did not require recycling.