On January 1, 2020, Sandar Ltd. purchased 32% of Yarder Co.s 50,000 outstanding common shares at a

Question:

On January 1, 2020, Sandar Ltd. purchased 32% of Yarder Co.’s 50,000 outstanding common shares at a price of $25 per share. This price is based on Yarder’s net assets.

On June 30, Yarder declared and paid a cash dividend of $60,000. On December 31, 2020, Yarder reported net income of $120,000 for the year. At this time, the shares had a fair value of $23. Sandar’s year-end is December 31 and follows ASPE.

Required:

a. Assuming that Sandar does not have any significant influence over Yarder, prepare all the 2020 entries relating to this investment using the FVNI classification.

b. Prepare all the 2020 entries relating to this investment if it was classified as cost due to no active markets.

c. Prepare all the 2020 entries relating to this investment assuming that Sandar has significant influence over Yarder. Sandar uses the equity method of accounting.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 100% (QA)

Answered By

Nicole omwa

Being a highly skilled tutor with at least 5 years of tutoring experience in different areas, I learned how to help diverse learners in writing drafts of research papers, actual research papers and locate credible sources. My assurance is built upon my varied knowledge of a variety of subjects. Furthermore, my involvement and interaction with numerous learners of all levels has allowed me to understand my clients' specific demands. Ultimately, this has aided me in being a better coach to learners to better their grades. Essentially, my responsibilities as a tutor would include: Teaching abilities that assist pupils in enhancing their academic performance Personal interaction with learners to make them understand abstract concepts Inducing new skills and knowledge into their academic journeys Fostering individual reflection, and independent and critical thinking Editing and proofreading Because I am constantly available to respond to your queries, you may decide to rely on me whenever you require my assistance. As an assurance, my knowledge skills and expertise enable me to quickly assist learners with different academic challenges in areas with difficulty in understanding. Ultimately, I believe that I am a reliable tutor concerned about my learner's needs and interests to solve their urgent projects. My purpose is always to assist them in comprehending abstract schoolwork and mastering their subjects. I also understand that plagiarism is a severe offense and has serious ramifications. Owing to this, I always make it a point to educate learners on the numerous strategies to have uniquely unique solutions. I am familiar with the following formatting styles: MLA APA Harvard Chicago IEEE Communication is always the key in every interaction with my learners. Hence, I provide timely communication about the progress of assigned projects. As a result, I make sure that I maintain excellent communication with all of my clients. I can engage with all of my customers more effectively, assisting them with their unique academic demands. Furthermore, I attempt to establish a solid working relationship with my leaners I have exceptional abilities in the below areas; Sociology History Nursing Psychology Literature Health and Medicine Chemistry Biology Management Marketing Business Earth Science Environmental Studies Education Being a teacher who aces in diverse fields, I provide various academic tasks, which include; Academic Reports Movie Reviews Literature Reviews Annotated bibliographies Lab reports Discussion posts Dissertations Case study analyses Research proposals Argumentative Essays I guarantee you high-quality Papers!!!!!

5.00+ 17+ Reviews 32+ Question Solved

Related Book For book-img-for-question