a) Grouper Inc. acquired 10% of the outstanding common shares of Gregson Inc. on December 31, 2019. The purchase price was $904,000 for 45,200 shares, and is equal to 10% of Gregson's carrying amount. Gregson declared and paid a $0.80 per share cash dividend on June 15 and again on December 15, 2020. Gregson reported net income of $516,000 for 2020. The fair value of Gregson's shares was $24 per share at December 31, 2020. Grouper is a public company and applies IFRS.
On January 1, 2020, Bridgeport Corp. acquires $328,000 of Spider Products Inc. 9% bonds at a price of $304,366. The interest is payable each December 31, and the bonds mature on December 31, 2022. The investment will provide Bridgeport Corp. with a 12% yield. Bridgeport Corp. applies IFRS and accounts for this investment using the amortized cost model. Prepare a three-year bond amortization schedule. (Round answers to 0 decimal places, e.g. 5,275.) Schedule of Interest Income and Bond Discount Amortization Effective Interest Method Cash Interest Bond Discount Carrying Amount Date Received Income Amortization of Bonds 01/01/20 $ 304366 12/31/20 $ 29520 $ 36524 $ 12/31/21 29520 12/31/22 29520 328000 What amount is reported for the investment in Gregson shares on the December 31, 2020 statement of nancial position under each of these methods in Fair Value Method and Equity Method? Fair Value Method Equity Method Investment $ 1084800 $ eTextbook and Media List of Accounts Where is the investment reported on statement ofnancial position? The Investment accounts under both Fair Value Method and Equity Method are likely to be included i J non-current liability current liability noncurrent assets eTextbook and Media current assets What amount is reported on Grouper's statement of comprehensive income in 2020 under each of these methods, and where are the amounts reported? Grouper Inc. Statement of Comprehensive Income Fair Value Method Equity Method c $ $ A t $ $ Other comprehensive income: (P Effect on comprehensive income for 2020 $ $ On August 1, 2020, Sarasota Corporation purchased 20% of the outstanding voting shares in WLT Corporation for $1,300,000. At the time of purchase, WLT's net assets were undervalued by $73,500 and had a remaining useful life of 12 years. Both companies had a December 31 year-end. At the end of 2020, WLT reported a net income of $320,000. Also, on December 31, 2020, the fair value of the investment in WLT shares was $1,425,000. On January 10, 2021, WLT paid a cash dividend. Sarasota's ownership entitles it to $18,100 of the dividend. Prepare the journal entries on the books of Sarasota Corporation to record the transactions described above, assuming that the 20% interest in WLT does not represent significant influence, and that Sarasota elected to account for its investment following the fair value through net income (FV-NI) model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 1, 2020 Investment in Associate 1300000 Cash 1300000 Dec. 31, 2020 4 Jan. 10, 2021 4 Cash 18100 Dividend Revenue 18100
