Bramble Corporation had the following portfolio of investments at December 31, 2020, that qualified and were accounted for using the FV-OCI method: Cost per Fair Value Percent Interest Quantity Share per Share Frank Inc. 2,000 shares 8% $12 $18 Ellis Corp. 4,900 shares 14% 21 16 Mendota Ltd. 4,200 shares 2% 31 24 Early in 2021, Bramble sold all the Frank Inc. shares for $19 per share, less a 1% commission on the sale. On December 31, 2021, Bramble's portfolio consists of the following common shares: Fair Value Percent Interest Quantity Cost per Share Ellis Corp. 4,900 shares 14% $21 $25 Mendota Ltd. 4,200 shares 2% 31 23 Kaptein Inc. 1,900 shares 1% 24 21 Assume that Bramble reports net income of $147,200 for its year ended December 31, 2021, and that the company follows a policy of capitalizing transaction costs. Realized gains and losses on equity investments are reclassified from accumulated other comprehensive income directly to retained earnings. What should be reported on Bramble's 2021 statement of comprehensive income for the investments accounted for using the FV- OCI model? Prepare a partial 2021 statement of comprehensive income for Bramble and provide an entry for classifying holding gains or losses to Retained Earnings on equity investments sold during 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Bramble Corporation Statement of Comprehensive Income December 31, 2021 Net Income /(Loss) (Not including any Dividend Income on Shares) $ $ Other Comprehensive Income Investment Gain on securities at FV-OCI Comprehensive Income /(Loss) $ Account Titles and Explanation Debit Credit (To reclassify realized gains - Frank Inc. shares) Marigold Hotels Ltd. (MHL) is a small boutique hotel that provides 40 suites that can be rented by the day, week, or month. Food service is available through room service as well. In addition, there are two suites that have been rented on a long-term basis to corporate tenants, who have access to their suites anytime throughout the year without making a reservation. The company has a December 31 year end, and you are preparing the year-end financial statements using IFRS. The following issues require your consideration: 1. Cash . The hotel keeps a significant amount of euro currency on hand to meet the needs of its guests. At year end, there was 14,520 on hand. The year-end exchange rate was $1.25, and the average rate for the year was $1.32. . The bank statement balance at December 31 was $191,535. There were outstanding cheques of $63,374 and an outstanding deposit of $18,739. Bank charges per the bank statement were $79 for the month of December and have been recorded. 2. Accounts receivable and allowance for doubtful accounts The hotel charges $182 per night for accommodation in one of the rental suites, and guests pay at the end of their stay, with daily revenue being accrued as it is earned. At December 31, the amount outstanding from short-term guests was $12,705. At year end, management expects to be unable to collect an amount equal to 5% of the outstanding receivables for this type of suite. During the year, Service Revenue amounted to $2,117,500, and the balance in Allowance for Doubtful Accounts at the end of the previous year was $18,150. During the year, $38,720 in accounts was written off. . The two corporate suites are rented for $54,450 apiece per year. The payment for these longer term rentals is due in advance each July 1 for the following 12 months. One of these corporate suites has been in use for part of the year, but the corporate tenant went bankrupt and was unable to pay the $54,450 fee. Hotel management had hoped the tenant would eventually be able to pay, and it allowed the company to use the suite until the end of October. Since then, the hotel has been in negotiations with the bankruptcy accountant and expects to eventually receive a settlement of $12,100. The balance will become uncollectible; no allowance for doubtful accounts has been recorded with respect to these suites as there have never been collection problems in the past. 3. Inventory PHL follows a policy of FIFO costing, and values items at the lower of cost and net realizable value based on an individual item basis. The hotel has a standing weekly order at set prices with a local catering firm. If the food is not eaten before the next delivery is received, it is donated to the local women's shelter. This ensures that all meals are of appropriate quality for the hotel guests. On December 31, the following items were delivered: Item Unit Cost Net Realizable Value 46 chicken dinners $4 $11 40 beef dinners $9 $18 74 frozen vegetable servings $1 $2 74 units of fresh fruit $1 $2 91 desserts $3 $5 The invoice for the food delivery on December 31 included an additional delivery charge of $0.10 per item, totalling $32.50. On December 31, an ice storm resulted in a loss of electricity to the hotel building. As a result, 19 chicken and 10 beef dinners thawed and were unusable. The hotel also maintains an inventory of white terry cloth bathrobes and towels that are available for sale to its clients. At December 31, the following information is available: Product Quantity Cost/Unit Selling Price/Unit Bathrobes, assorted sizes 44 $48.50 $79.00 Towels, extra-large 22 $18.30 $17.00 Towels, large 26 $13.00 $29.00 *The extra-large towels are no longer popular and management has decided to discontinue them. It offers the hotel staff a 20% commission for all extra-large towels they sell at the sale price of $17.00. 4. Investments On December 1, PHL purchased a $121,000.90-day Canadian government treasury bill for $118.627 to yield 8%. During the year, PHL purchased 30% of the shares in Western Hotel Company, a company that owns a similar hotel property in a nearby city, for $5 million, a price corresponding to 30% of its book value. Subsequently, Western Hotel Company paid a dividend totalling $121.000 and earned income of $302.500. The fair value of the common shares as at December 31 was $6,171,000. PHL also purchased common shares of Dufort Corp. as a temporary investment for $58,080. At the end of the year, these shares had a fair value of $56.870, according to the December 31 closing price on the Toronto Stock Exchange. A dividend of $605 was received during the year. (c) Investment income Calculate the carrying amount as at December 31 and investment income for the year ended December 31 for each of the financial instruments listed below. (Round answers to O decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Use 365 days for calculation.) Financial instrument Carrying Amount ($) Investment Income ($) 90-day Canadian government treasury bill Using: amortized cost $ $ Western Hotel Company common shares Using: equity method $ $ Western Hotel Company common shares Using: FV-OCI $ $ Dufort Corp.common shares Using: FV-NI $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer At December 31, 2020, the equity investments of Riverbed Inc. that were accounted for using the FV-OCI model without recycling were as follows: Cost and Carrying Amount Unrealized Gain (Loss) Investment Fair Value Ahn Inc. $175,200 $150,300 $(24,900) Burnham Corp. 121,000 140,000 19,000 Chi Ltd. 72,600 75,100 2,500 Total $368,800 $365,400 $(3,400) Because of a change in relationship with Ahn Inc., Riverbed Inc. sold its investment in Ahn for $152,400 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,400 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $154,100 and $72,600, respectively. ( e) Prepare the journal entry required at December 31, 2021, to adjust the investments to fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit FV-OCI Investments Unrealized Gain or Loss - OCI e Textbook and Media List of Accounts Save for Later Last saved 1 hour ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Bramble Corporation had the following portfolio of investments at December 31, 2020, that qualified and were accounted for using the FV-OCI method: Cost per Fair Value Percent Interest Quantity Share per Share Frank Inc. 2,000 shares 8% $12 $18 Ellis Corp. 4,900 shares 14% 21 16 Mendota Ltd. 4,200 shares 2% 31 24 Early in 2021, Bramble sold all the Frank Inc. shares for $19 per share, less a 1% commission on the sale. On December 31, 2021, Bramble's portfolio consists of the following common shares: Fair Value Percent Interest Quantity Cost per Share Ellis Corp. 4,900 shares 14% $21 $25 Mendota Ltd. 4,200 shares 2% 31 23 Kaptein Inc. 1,900 shares 1% 24 21 Assume that Bramble reports net income of $147,200 for its year ended December 31, 2021, and that the company follows a policy of capitalizing transaction costs. Realized gains and losses on equity investments are reclassified from accumulated other comprehensive income directly to retained earnings. What should be reported on Bramble's 2021 statement of comprehensive income for the investments accounted for using the FV- OCI model? Prepare a partial 2021 statement of comprehensive income for Bramble and provide an entry for classifying holding gains or losses to Retained Earnings on equity investments sold during 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts.) Bramble Corporation Statement of Comprehensive Income December 31, 2021 Net Income /(Loss) (Not including any Dividend Income on Shares) $ $ Other Comprehensive Income Investment Gain on securities at FV-OCI Comprehensive Income /(Loss) $ Account Titles and Explanation Debit Credit (To reclassify realized gains - Frank Inc. shares) Marigold Hotels Ltd. (MHL) is a small boutique hotel that provides 40 suites that can be rented by the day, week, or month. Food service is available through room service as well. In addition, there are two suites that have been rented on a long-term basis to corporate tenants, who have access to their suites anytime throughout the year without making a reservation. The company has a December 31 year end, and you are preparing the year-end financial statements using IFRS. The following issues require your consideration: 1. Cash . The hotel keeps a significant amount of euro currency on hand to meet the needs of its guests. At year end, there was 14,520 on hand. The year-end exchange rate was $1.25, and the average rate for the year was $1.32. . The bank statement balance at December 31 was $191,535. There were outstanding cheques of $63,374 and an outstanding deposit of $18,739. Bank charges per the bank statement were $79 for the month of December and have been recorded. 2. Accounts receivable and allowance for doubtful accounts The hotel charges $182 per night for accommodation in one of the rental suites, and guests pay at the end of their stay, with daily revenue being accrued as it is earned. At December 31, the amount outstanding from short-term guests was $12,705. At year end, management expects to be unable to collect an amount equal to 5% of the outstanding receivables for this type of suite. During the year, Service Revenue amounted to $2,117,500, and the balance in Allowance for Doubtful Accounts at the end of the previous year was $18,150. During the year, $38,720 in accounts was written off. . The two corporate suites are rented for $54,450 apiece per year. The payment for these longer term rentals is due in advance each July 1 for the following 12 months. One of these corporate suites has been in use for part of the year, but the corporate tenant went bankrupt and was unable to pay the $54,450 fee. Hotel management had hoped the tenant would eventually be able to pay, and it allowed the company to use the suite until the end of October. Since then, the hotel has been in negotiations with the bankruptcy accountant and expects to eventually receive a settlement of $12,100. The balance will become uncollectible; no allowance for doubtful accounts has been recorded with respect to these suites as there have never been collection problems in the past. 3. Inventory PHL follows a policy of FIFO costing, and values items at the lower of cost and net realizable value based on an individual item basis. The hotel has a standing weekly order at set prices with a local catering firm. If the food is not eaten before the next delivery is received, it is donated to the local women's shelter. This ensures that all meals are of appropriate quality for the hotel guests. On December 31, the following items were delivered: Item Unit Cost Net Realizable Value 46 chicken dinners $4 $11 40 beef dinners $9 $18 74 frozen vegetable servings $1 $2 74 units of fresh fruit $1 $2 91 desserts $3 $5 The invoice for the food delivery on December 31 included an additional delivery charge of $0.10 per item, totalling $32.50. On December 31, an ice storm resulted in a loss of electricity to the hotel building. As a result, 19 chicken and 10 beef dinners thawed and were unusable. The hotel also maintains an inventory of white terry cloth bathrobes and towels that are available for sale to its clients. At December 31, the following information is available: Product Quantity Cost/Unit Selling Price/Unit Bathrobes, assorted sizes 44 $48.50 $79.00 Towels, extra-large 22 $18.30 $17.00 Towels, large 26 $13.00 $29.00 *The extra-large towels are no longer popular and management has decided to discontinue them. It offers the hotel staff a 20% commission for all extra-large towels they sell at the sale price of $17.00. 4. Investments On December 1, PHL purchased a $121,000.90-day Canadian government treasury bill for $118.627 to yield 8%. During the year, PHL purchased 30% of the shares in Western Hotel Company, a company that owns a similar hotel property in a nearby city, for $5 million, a price corresponding to 30% of its book value. Subsequently, Western Hotel Company paid a dividend totalling $121.000 and earned income of $302.500. The fair value of the common shares as at December 31 was $6,171,000. PHL also purchased common shares of Dufort Corp. as a temporary investment for $58,080. At the end of the year, these shares had a fair value of $56.870, according to the December 31 closing price on the Toronto Stock Exchange. A dividend of $605 was received during the year. (c) Investment income Calculate the carrying amount as at December 31 and investment income for the year ended December 31 for each of the financial instruments listed below. (Round answers to O decimal places, e.g. 5,275. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Use 365 days for calculation.) Financial instrument Carrying Amount ($) Investment Income ($) 90-day Canadian government treasury bill Using: amortized cost $ $ Western Hotel Company common shares Using: equity method $ $ Western Hotel Company common shares Using: FV-OCI $ $ Dufort Corp.common shares Using: FV-NI $ $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer At December 31, 2020, the equity investments of Riverbed Inc. that were accounted for using the FV-OCI model without recycling were as follows: Cost and Carrying Amount Unrealized Gain (Loss) Investment Fair Value Ahn Inc. $175,200 $150,300 $(24,900) Burnham Corp. 121,000 140,000 19,000 Chi Ltd. 72,600 75,100 2,500 Total $368,800 $365,400 $(3,400) Because of a change in relationship with Ahn Inc., Riverbed Inc. sold its investment in Ahn for $152,400 on January 20, 2021. No other investments were acquired or sold during 2021; however, a dividend of $1,400 was received from Burnham Corp. in June. At December 31, 2021, the fair values of Burnham and Chi shares were $154,100 and $72,600, respectively. ( e) Prepare the journal entry required at December 31, 2021, to adjust the investments to fair value. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit FV-OCI Investments Unrealized Gain or Loss - OCI e Textbook and Media List of Accounts Save for Later Last saved 1 hour ago. Attempts: 0 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes