Question
Marigold Corp. provided you with the following information about its investment in Fahad Corp. shares purchased in May 2017 and accounted for using the FV-OCI
Marigold Corp. provided you with the following information about its investment in Fahad Corp. shares purchased in May 2017 and accounted for using the FV-OCI method:
Cost | $36,700 | |
Fair value, December 31, 2017 | $38,400 | |
Fair value, December 31, 2018 | $29,600 | |
Fair value, December 31, 2019 | $33,500 |
A) Prepare the adjusting journal entries needed on December 31, 2017, 2018, and 2019.
B)Determine the balance in accumulated other comprehensive income on the statement of financial position on each of December 31, 2017, 2018, and 2019.
C)Assume that Marigold sold its investment in Fahad Corp. on February 13, 2020, for $35,000. Prepare the journal entries needed on this date, assuming no recycling.
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