Question
2) Marshall Seeds Inc. (MSI) has provided you with the following information about their investment in Techtonic Inc. shares that they purchased on September 14,
2) Marshall Seeds Inc. (MSI) has provided you with the following information about their investment in Techtonic Inc. shares that they purchased on September 14, 2023. These shares are accounted for using the FV-OCI method without recycling.
Cost $29,500
Fair value, December 31, 2023 $30,900
Fair value, December 31, 2024 $23,800
Fair value, December 31, 2025 $26,900
a) Prepare the adjusting journal entries needed on December 31, 2023, 2024 and 2025.
b) What is the balance in the AOCI account at the end of each of December 31, 2023, 2024 and 2025?
c) MSI sold all their shares in Techtonic Inc. on April 1, 2026 for $28,100. Prepare all the required journal entries related to this sale.
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
