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Blue Spruce Company purchased 1000 common shares of Vaughn Company on August 1 for $13 per share. At December 31, Blue Spruce's year end. Vaughn's
Blue Spruce Company purchased 1000 common shares of Vaughn Company on August 1 for $13 per share. At December 31, Blue Spruce's year end. Vaughn's shares are selling for $25.00 and Vaughn reported net income of $159000. Assuming Blue Spruce accounts for the investment using FVTPL the adjustment to the investment account at year and would be credit to Investment at FVTPL-ABC Company for $25000 debit to Investment at FVTPL-ABC Company for $13000 O credit to Investment at FVTPL-ABC Company for $11500 debit to Investment at FVTPL-ABC Company for 512000
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