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investments: Year Shares purchased (sold) Price/share Price/share Jan 1 Dec 31 20x1 200 $77 $66 20x2 (90) 57 72 All sales and purchases are assumed
investments:
| Year | Shares purchased (sold) | Price/share | Price/share |
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| Jan 1 | Dec 31 |
| 20x1 | 200 | $77 | $66 |
| 20x2 | (90) | 57 | 72 |
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All sales and purchases are assumed to occur on January 1. Price may vary from price on previous day (December 31).
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| 20x1 | 20x2 |
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| Investee eps | $7 | $8 |
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| Investee dps | 3 | 3 |
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Investee eps (earnings per share); Investee dividend per share (dps)
Consider Trading, and the Equity method for classifying investment
Required:
- Show the B/S carrying amount for each of the 2 years if the investment is classified as TRADING, and EQUITY METHOD (Show calculations) (6 marks)
20X1 20X2
TRADING
EQUITY-method
- Show the total income recognized for each of the 2 years if the investment is classified as TRADING, and EQUITY METHOD (Show calculations) (9 marks)
20X1 20X2
TRADING
EQUITY-method
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