Question
Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st
Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st Alberta declared and paid a $75,000 cash dividend. On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00.
What is the balance in the Investment in Alberta Enterprises account on Canada's books at December 31st assuming Canada follows IFRS and accounts for Alberta using the FVNI method?
| A. | $252,500 | |
| B. | $267,500 | |
| C. | $300,000 | |
| D. | $260,000 | |
| E. | None of the other alternatives are correct |
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