Exercise 9-25
On January 1, 2020, Monty Corporation purchased 30% of the common shares of Martz Limited for $201,000. Martz Limited shares are not traded in an active market. The carrying amount of Martzs net assets was $540,000 on that date. Any excess of the purchase cost over Montys share of Martzs carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $79,000 and paid dividends of $15,800. The investment in Martz had a fair value of $206,000 at December 31, 2020. During 2021, Martz incurred a net loss and comprehensive loss of $84,000 and paid no dividends. At December 31, 2021, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Monty follows IFRS.
Prepare all relevant joumal entries related to Monty's Investrent In Martz for 2020 and 2021, assuming this is its only Investment and Monty cannot exercise significant inwence over Matz's policies. Monty accounts for this Investment using the FV-N1 model and separately records and reports esch type of Incore (less, separately. (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 tities and enter o for the amounts.) Account Titles and Explanation Debit Credit 2020 (To record Investment purchase) (To record collection of dividend (Tonacard fair value adjustment) 2021: LINK TO TEXI LINK TO TEXT LINK 10 TEXT Illustrate how the statement of comprehensive income is affected in 2020. (Enter answers in alphabetical order.) Net Income will include the and the LINK TO TEXT LINK TO TEXT LINK 10 TEXT Tlustrate how the statement of comprehensive Income is affected In 2021. Ne-Income will include the for the Illustrate how the statement of comprehensive income is affected in 2020. (Enter answers in alphabetical order.) Net income will include the of $ and the of $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Illustrate how the statement of comprehensive income is affected in 2021. Net Income will include the for the of $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare all relevant journal entries related to Monty's investment in Martz for 2020 and 2021, assuming this is its only investment and Monty exercises significant influence over its associates' policies, is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation 2020: (To record investment purchase) (To record collection of dividend) (To record Investment Income) (To record amortization of fair value difference) 2021: (To record investment income) (To record amortization of fair value difference) (To record loss on impairment) Illustrate how the statement of comprehensive income is affected in 2020. Net Income will include the LINK TO TEXT LINK TO TEXT LINK TO TEXT Illustrate how the statement of comprehensive Income is affected in 2021. Net Income will include and of sl LINK TO TEXT LINK TO TEXI LINK TO TEXT Prepare relevant journal entry related to Monty's investment in Martz for 2020, if you were told that Martz's 2020 statement of comprehensive income included a loss from discontinued operations of $23,000 (net of tax)? when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record Investment income) LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the statement of comprehensive income if you were told that Martz's 2020 statement of comprehensive income included a loss from discontinued operations of $23,000 (net of tax)? (Enter negative amounts us e.g. -45 or parentheses e.g. (45).) Martz Limited Comprehensive Income Statement Prepare all relevant joumal entries related to Monty's Investrent In Martz for 2020 and 2021, assuming this is its only Investment and Monty cannot exercise significant inwence over Matz's policies. Monty accounts for this Investment using the FV-N1 model and separately records and reports esch type of Incore (less, separately. (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 tities and enter o for the amounts.) Account Titles and Explanation Debit Credit 2020 (To record Investment purchase) (To record collection of dividend (Tonacard fair value adjustment) 2021: LINK TO TEXI LINK TO TEXT LINK 10 TEXT Illustrate how the statement of comprehensive income is affected in 2020. (Enter answers in alphabetical order.) Net Income will include the and the LINK TO TEXT LINK TO TEXT LINK 10 TEXT Tlustrate how the statement of comprehensive Income is affected In 2021. Ne-Income will include the for the Illustrate how the statement of comprehensive income is affected in 2020. (Enter answers in alphabetical order.) Net income will include the of $ and the of $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Illustrate how the statement of comprehensive income is affected in 2021. Net Income will include the for the of $ LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare all relevant journal entries related to Monty's investment in Martz for 2020 and 2021, assuming this is its only investment and Monty exercises significant influence over its associates' policies, is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Account Titles and Explanation 2020: (To record investment purchase) (To record collection of dividend) (To record Investment Income) (To record amortization of fair value difference) 2021: (To record investment income) (To record amortization of fair value difference) (To record loss on impairment) Illustrate how the statement of comprehensive income is affected in 2020. Net Income will include the LINK TO TEXT LINK TO TEXT LINK TO TEXT Illustrate how the statement of comprehensive Income is affected in 2021. Net Income will include and of sl LINK TO TEXT LINK TO TEXI LINK TO TEXT Prepare relevant journal entry related to Monty's investment in Martz for 2020, if you were told that Martz's 2020 statement of comprehensive income included a loss from discontinued operations of $23,000 (net of tax)? when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record Investment income) LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the statement of comprehensive income if you were told that Martz's 2020 statement of comprehensive income included a loss from discontinued operations of $23,000 (net of tax)? (Enter negative amounts us e.g. -45 or parentheses e.g. (45).) Martz Limited Comprehensive Income Statement
