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ACC 502 Class 9 Session on Investments On January 1, 2018 Grizzly Bears bought 20,000 common shares of Tundra Hart, Inc., for $200,000 cash. The
ACC 502 Class 9 Session on Investments On January 1, 2018 Grizzly Bears bought 20,000 common shares of Tundra Hart, Inc., for $200,000 cash. The share price of Tundra Hart, Inc. closed at $9 and $12 on December 31, 2018 and December 31, 2019, respectively. On January 1, 2020 Grizzly Bears sold its holdings at $14 per share cash. Both companies close their books annually on December 31. Grizzly Bears had no other securities nor any other items that affect Accumulated Other Comprehensive Income (AOCI). Ignore the effect of taxes. 1. Assuming that Grizzly Bears classified the Tundra Hart investment as Available-for-Sale securities, what is the effect of the Tundra Hart investment on Grizzly Bear's income for 2018, 2019, and 2020? 2.. Assuming that Grizzly Bears classified the Tundra Hart investment as Trading securities, what is the effect of the Tundra Hart investment on Grizzly Bear's income for 2018, 2019, and 2020
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