Question
Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2024. March 1 Purchases 1,600
Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2024.
| March 1 | Purchases 1,600 shares (10%) of Power Drive Corporations common stock for $48 per share. |
|---|---|
| July 1 | Receives a cash dividend of $1.70 per share. |
| December 31 | The fair value of Power Drive Corporations common stock is $61 per share. |
On February 1, 2025 (the following year), Gator Shoes sells 400 shares of Power Drive Corporations common stock for $66 per share.
Required:
- How will each of these transactions in 2024, including an adjustment on December 31 for the investments fair value, affect the financial statements?
- How will the sale on February 1, 2025, affect the financial statements?
The fair value of Power Drive Corporation's common stock is $61 per share. Note: Amounts to be deducted should be indicated with a minus sign. iator Shoes sells 400 shares of Power Drive Corporation's common stock for $66 per share. ote: Amounts to be deducted should be indicated with a minus sign. Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2024. March 1 Purchases 1,600 shares (10\%) of Power Drive Corporation's common stock for $48 per share. July 1 Receives a cash dividend of $1.70 per share. December 31 The fair value of Power Drive Corporation's common stock is $61 per share. On February 1, 2025 (the following year), Gator Shoes sells 400 shares of Power Drive Corporation's common stock for $66 per share. Required: 1. How will each of these transactions in 2024 , including an adjustment on December 31 for the investment's fair value, affect the financial statements? 2. How will the sale on February 1, 2025, affect the financial statements? Complete this question by entering your answers in the tabs below. Purchases 1,600 shares (10\%) of Power Drive Corporation's common stock for $48 per share. Note: Amounts to be deducted should be indicated with a minus sign. Receives a cash dividend of $1.70 per share. Note: Amounts to be deducted should be indicated with a minus sign Step by Step Solution
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The Logistics Audit Methods Organization And Practice
Authors: Piotr Buła, Bartosz Niedzielski
1st Edition
1032461268, 978-1032461267
