Question
Landers Inc. had the following transactions involving non-strategic investments during 2014. 2014 Apr. 1 Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount,
Landers Inc. had the following transactions involving non-strategic investments during 2014. |
2014 | ||
Apr. 1 | Paid $108,000 to buy a 90-day term deposit, $108,000 principal amount, 6.5%, dated April 1. | |
12 | Purchased 3,800 common shares of Dofasco Ltd. at $24.25. | |
June 9 | Purchased 2,600 common shares of Power Corp. at $51.00. | |
20 | Purchased 1,100 common shares of Westburne Ltd. at $17.75. | |
July 1 | Purchased for $75,561 a 8.5%, $73,000 Littleton Inc. bond that matures in eight years when the market interest rate was 7.9%. Interest is paid semiannually beginning December 31, 2014. Landers Inc. plans to hold this investment until maturity. | |
3 | Received a cheque for the principal and accrued interest on the term deposit that matured on June 30. | |
15 | Received a $0.95 per share cash dividend on the Dofasco common shares. | |
28 | Sold 1,900 of the Dofasco common shares at $28.00. | |
Sept. 1 | Received a $2.90 per share cash dividend on the Power Corp. common shares. | |
Dec. 15 | Received a $1.45 per share cash dividend on the remaining Dofasco common shares owned. | |
31 | Received the interest on the Littleton bond. | |
31 | The fair values of Landers Inc.s investments on this date were: Dofasco shares, $25.40; Power Corp. shares, $43.15; Westburne shares, $18.05. Assume the fair value and the carrying value of the Littleton bond were equal. | |
2015 | ||
Feb. 16 | Sold the remaining Dofasco shares at $28.25. |
Required: |
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