Question
At December 31, 2020, Platinum Corp. has the following equity securities (no significant influence) that were purchased earlier in 2020, its first year of operation:
At December 31, 2020, Platinum Corp. has the following equity securities (no significant influence) that were purchased earlier in 2020, its first year of operation:
| Cost | Market | ||||
| Security | A | $50,000 | $51,875 | ||
| B | 70,000 | 77,500 | |||
| Totals | $120,000 | $129,375 | |||
If the investments are being accounted for under the fair value through net income (FVNI) model, the total book value of the investment accounts should
|
| be increased by $9,375. |
|
| be decreased by $20,000. |
|
| be decreased by $9,375. |
|
| remain unchanged. |
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Principles Of Auditing And Other Assurance Services
Authors: Ray Whittington, Kurt Pany
22nd Edition
126059808X, 978-1260598087
