Sabre Corporation, a public company, has the following investments at November 30, 2014: 1. Trading investments: common
Question:
Sabre Corporation, a public company, has the following investments at November 30, 2014:
1. Trading investments: common shares of National Bank, carrying value $25,000, fair value $26,000, and five year, 5% bonds of Turbo Corp., carrying value $50,000, fair value $48,000
2. Strategic investment: 15% of the common shares of Sword Corp., carrying value $108,000, fair value $105,000
3. Strategic investment: common shares of Epee Inc. (30% ownership), cost $210,000, equity method balance $250,000
4. Debt investment purchased to earn interest: bonds of Ghoti Ltd. maturing in four years, amortized cost $150,000, fair value $175,000
5. Debt investment purchased to earn interest: Canadian government 120-day treasury bill, purchased at $25,000, $125 interest accrued to November 30, 2014
Show how the investments would be reported in the assets section of the balance sheet.
Step by Step Answer:
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow