Question
Marigold Corporation made the following purchases of investments during 2020, the first year in which Marigold invested in equity securities: 1. On January 15, purchased
Marigold Corporation made the following purchases of investments during 2020, the first year in which Marigold invested in equity securities:
1. | On January 15, purchased 8,190 shares of Nirmala Corp.s common shares at $30.50 per share plus commission of $1,803. | |
2. | On April 1, purchased 4,550 shares of Oxana Corp.s common shares at $47 per share plus commission of $3,067. | |
3. | On September 10, purchased 6,370 shares of WTA Corp.s preferred shares at $24.10 per share plus commission of $2,648. |
On May 20, 2020, Marigold sold 2,730 of the Nirmala common shares at a market price of $32 per share less brokerage commissions of $2,594. The year-end fair values per share were as follows: Nirmala $27, Oxana $50, and WTA $25. The chief accountant of Marigold tells you that Marigold Corporation holds these investments with the intention of selling them in order to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Assume that Marigold Corporation follows IFRS 9.
All my selections in the black box are wrong
Your answer is partially correct. Try again. What is the amount that will be reported as other comprehensive income for the year ended December 31, 2020? Show the wording that would appear on the comprehensive income statement. (If an amount reduces the account balance then enter with negative sign.) Other Comprehensive Income TItems that may not be reclassified subsequently to net income Holding losses arising during the year -19110 Fair value adjustment May 20 On Nirmala Corp, shares sold Year end fair value adjustment for portfolio -20312 Total -13288 SHOW LIST OF ACCOUNTS 0 900 Your answer is correct. What will be the balance in Accumulated Other Comprehensive Income on December 31, 2020? (If an amount reduces the account balance then enter with negative sign.) Balance of Accumulated Other Comprehensive Income: Beginning balance other comprehensive income for 2020 -5744 Less T Reclassification adjustment 9001 Ending balance December 31, 2020 sl -6644)Step by Step Solution
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