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Exercise x .Co. A bought 20,000 shares of MasterTrade, supplier of equipment for construction and renovation. With in-depth knowledge of the hardware retailing business, Co.

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Exercise x .Co. A bought 20,000 shares of MasterTrade, supplier of equipment for construction and renovation. With in-depth knowledge of the hardware retailing business, Co. A management believes that MasterTrade's shares are undervalued a and that the company could make a quick profit selling the shares within the next 12 months. Co. A purchased the shares at a price of $42 each and received $0.5 per share of dividends during the year. The shares traded at $46 at the fiscal year end. The company purchased 6,000 units of mutual fund that cost $22 each. The mutual fund invests primarily in shares. Management had no specific trading intentions for this investment; rather, it was a means of parking excess cash. At the end of the year, the units had a quoted market value of $21 .At the beginning of the year, Co. A bought 25% of the common shares in Unique Tools, one of its smaller supplier, for $3 million. These shares had a fair value of $3.2 million at the end of the year. During the year, Unique Tools had profits of $800,000 and paid dividends of $1 60,000. Determine how Company A should report the above investments in its financial statements. Include the effects on (1) the balance sheet; (2) net income (3) other comprehensive income

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