Question
Ayayai Inc, acquired 10% of the outstanding common shares of Gregson Inc. on December 31,2022 . The purchase price was $810,000 for 45,000 shares and
Ayayai Inc, acquired 10% of the outstanding common shares of Gregson Inc. on December 31,2022 . The purchase price was $810,000 for 45,000 shares and is equal to 10% of Gregson's carrying amount. Gregson declared and paid a $0.70 per share cash dividend on June 15 and again on December 15,2023 . Gregson reported net income of $480,000 for 2023 . The fair value of Gregson's shares was $19 per share at December 31, 2023. Ayayai is a public company and applies IFRS.
B. Prepare the journal entries for Ayayai for 2022 and 2023 , assuming that Ayayai can exercise significant influence over Gregson .
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