Question
Her Company purchased 44,000 common shares (20%) of Him Inc. on January 1, Year 4, for $748,000. Additional information on Him for the three years
Her Company purchased 44,000 common shares (20%) of Him Inc. on January 1, Year 4, for $748,000. Additional information on Him for the three years ending December 31, Year 6, is as follows:
Year | Net Income | Dividends Paid | Market Value per Share at December 31 |
Year 4 | $440,000 | $330,000 | $18 |
Year 5 | 495,000 | 352,000 | 20 |
Year 6 | 528,000 | 385,000 | 23 |
On December 31, Year 6, Her sold its investment in Him for $1,012,000.
Required:
(b) Calculate how much income will be reported in net income and other comprehensive income in each of Years 4, 5, and 6, and in total for the three years assuming that the investment is classified as (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.)
(i) FVTPL
Year 4 | Year 5 | Year 6 | Total | ||||
Dividend income | $ | $ | $ | $ | |||
Unrealized gains | |||||||
Gain on sale | |||||||
Net income | $ | $ | $ | $ | |||
Total OCI | |||||||
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