Question
London Ltd. reported the following transactions and information regarding the shares of Dolma Corp: 15 October 20X2, purchased 4,800 shares at $50 per share plus
London Ltd. reported the following transactions and information regarding the shares of Dolma Corp:
15 October 20X2, purchased 4,800 shares at $50 per share plus $2,100 commission. 1 December 20X2, received $0.60 per share cash dividend. 31 December 20X2, fair value is $42 per share. 1 December 20X3, received $0.60 per share cash dividend. 31 December 20X3, fair value is $53 per share. 15 November 20X4, sold 1,600 shares at $46 per share less $690 commission. 1 December 20X4, received $0.60 per share cash dividend. 31 December 20X4, fair value is $45 per share.
Required:
1. Show the amounts and accounts that would be reported in earnings and the statement of financial position for 20X2, 20X3, and 20X4 if the company uses the: (Negative amounts should be indicated by minus sign.) a. Cost method.
b. FVTPL method.
c. FVOCI-Equity method; realized amounts are transferred to retained earnings.
2. Not available in Connect.
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