Refer to the facts presented in problem P7-13.
In problem
On January 25, 2011, Douglas Ltd. purchased 1,000 common shares of BMO (Bank of Montreal) for $65 each. During the remainder of 2011, Douglas received $2.80/share in dividends and BMO’s earnings per share were $5.30. The closing price of the shares on the fiscal year-end date of December 31, 2011 was $69.
Required:
Assume that Douglas classifies the investment as available for sale.
a. At what value should Douglas report the BMO shares on its December 31, 2011 balance sheet?
b. How much income should Douglas report in relation to these shares?
c. How much other comprehensive income (OCI) should Douglas report in relation to these shares?