On January 1, 2017, LL Company acquired 20,000 shares, representing 20% of the outstanding shares of TT

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On January 1, 2017, LL Company acquired 20,000 shares, representing 20% of the outstanding shares of TT Limited at a price of $15 per share. On July 31, 2017, TT declared and paid a dividend of $1 per share. TT€™s net income for 2017 was $250,000. On December 31, 2017, the shares of TT were trading on the Toronto Stock Exchange at $18 per share.


Required:
LL is not sure how to report its investment in TT shares. Using the following format, indicate the amounts that would appear on the balance sheet and the statement of comprehensive income for 2017 if the investment (a) has been irrevocably elected to be measured at fair value through OCI, (b) is classifi ed as FVPL, or (c) is an associate.
Fair value through OCI election Associate FVPL Balance sheet Investment in TT shares Statement of comprehensive income D

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Intermediate Accounting

ISBN: 9787300071374

3rd Edition Vol. 1

Authors: Kin Lo, George Fisher

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