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 impact on net income on Canada's books at December 31st assuming Canada follows IFRS and accounts for Alberta using the FVNI method?
| A. | $197,000 | |
| B. | None of the other alternatives are correct | |
| C. | $47,500 | |
| D. | $122,000 | |
| E. | $7,500 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Wiley CPAexcel Exam Review April Study Guide Regulation 2017
Authors: Wiley
2nd Edition
1119369436, 978-1119369431
