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A11-14 Share Investments-Cost, FVOCI, FVTPL (LO 11-3, 11-4, 11-5, 11-11) On 30 April 202, Marc Company purchased 3,700 shares of Spencer Ltd. for $20
A11-14 Share Investments-Cost, FVOCI, FVTPL (LO 11-3, 11-4, 11-5, 11-11) On 30 April 202, Marc Company purchased 3,700 shares of Spencer Ltd. for $20 per share plus $370 in commission. In 20X2, the company received a $0.65 per share dividend, and the shares had a fair value of $16 per share at the end of the year. In 20X3, the dividend was $1.30 per share, and the fair value was $24 per share at the end of the year. In 20X4, the shares were sold for $23 per share less a $460 commission. Required: 1. Show the amounts and accounts that would be reported in earnings and the statement of financial position for 20X2, 20X3, and 20X4 if the company uses the: (Negative amounts should be indicated by minus sign.) a. Cost method. Earnings 20X2 20X3 20X4 Dividend revenue $ 2,405 $ 4,810 $ 0 Fees and commissions $ 0 $ 0 $ 0 Gain on sale $ 0 $ 0 1,990 Statement of financial position Investment $ 83,570 $ 83,570 OCI: Holding gain/(loss) $ 0 $ 0 $ b. FVTPL method. 20X2 20X3 20X4 Earnings Dividend revenue Fees and commissions $ 2,405 $ 0 $ 4,810 $ 0 $ 0 0 Holding gains (losses) (24,370) 29,600 (3,240) Statement of financial position Investment $ 59,200 $ 88,800 $ 0
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