Becket

Ltd. bought

3,200

common shares of

True Value

Drug Mart at

$55

each,

690

common shares of

Majesty Bank

(MB)

at

$41.75,

and

1,100

common shares of

EnCouver

at

$93.50,

all as non-strategic investments. At

December 31,

TSX Online reports

True Value's

shares at

$48.70,

MB's

shares at

$32.25,

and

EnCouver's

shares at

$56.38.

The company reports changes in fair value through other comprehensive income.

Requirements

1.	Determine the cost and the fair value of the long-term investment portfolio at December 31.
2.	Record Becket's adjusting entry at December 31.
3.	What would Becket report on its income statement and balance sheet for the information given? Make the necessary disclosures. Ignore income tax.

Becket Ltd. bought 3,200 common shares of True Value Drug Mart at $55 each, 690 common shares of Majesty Bank (MB) at $41.75, and 1,100 common shares of Encouver at $93.50, all as non-strategic investments. At December 31, TSX Online reports True Value's shares at $48.70, MB's shares at $32.25, and Encouver's shares at $56.38. The company reports changes in fair value through other comprehensive income. Requirements 1. Determine the cost and the fair value of the long-term investment portfolio at December 31. 2. Record Becket's adjusting entry at December 31. 3. What would Becket report on its income statement and balance sheet for the information given? Make the necessary disclosures. Ignore income tax. Requirement 1. Determine the cost and the fair value of the long-term investment portfolio at December 31. Number Cost Fair value Total Stock of shares per share Total cost per share fair value True Value Majesty Bank EnCouver Totals