Question
At December 31, 2020, Swift Current Inc. has the following portfolio of common shares in which it does not have significant influence: Cost Fair Value
At December 31, 2020, Swift Current Inc. has the following portfolio of common shares in which it does not have significant influence:
| Cost | Fair Value | |||
| Apple Corp. | $100,000 | $120,000 | ||
| Chester Inc. | 200,000 | 205,000 | ||
| Dooley Ltd. | 300,000 | 500,000 | ||
| $600,000 | $825,000 |
Assuming Swift Current uses the fair value through other comprehensive income (FVOCI) model to account for this portfolio of investments, the most informative entry to record the year-end adjustment is
A.
| FVOCI Investments | 225,000 | ||
| Unrealized Gain or LossOCI | 225,000 |
| FVOCI Investment in Apple Corp | 20,000 | ||
| FVOCI Investment in Chester Inc. | 5,000 | ||
| FVOCI Investment in Dooley Ltd. | 200,000 | ||
| Unrealized Gain or LossOCI on Apple Corp. | 20,000 | ||
| Unrealized Gain or LossOCI on Chester Inc. | 5,000 | ||
| Unrealized Gain or LossOCI on Dooley Ltd. | 200,000 |
| Unrealized Gain or LossOCI on Apple Corp. | 20,000 | ||
| Unrealized Gain or LossOCI on Chester Inc. | 5,000 | ||
| Unrealized Gain or LossOCI on Dooley Ltd. | 200,000 | ||
| FVOCI Investment in Apple Corp. | 20,000 | ||
| FVOCI Investment in Chester Inc. | 5,000 | ||
| FVOCI Investment in Dooley Ltd. | 200,000 |
| Unrealized Gain or LossOCI | 225,000 | ||
| FVOCI Investments | 225,000 |
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Audit Committees Audit Committees Issues Constraints And Development Trends Of Their Roles And Responsibilities
Authors: Mounir Hedhili
1st Edition
620362120X, 978-6203621204
